Originally written by Anna Jordan on Small Business
In today’s Budget, Chancellor Rishi Sunak cut the lifetime limit on entrepreneur’s relief from £10m to £1m. He said that 80 per cent of small business owners will not be affected by the move.
For a round-up of announcements relating to small business owners, read Budget 2020 what it means for small business – analysis and live blog.
‘A missed opportunity’
Though hailed as a ‘sensible reform’ by Sunak, many industry experts wanted to see it abolished altogether.
Phil Hall, AAT’s head of public affairs & public policy, said:
“AAT is pleased that the Chancellor acknowledged many of the numerous negative points that this misnamed relief has, including that fewer than one in 10 entrepreneurs have been incentivised to invest because of it, that its name is misleading and that that 75pc of the £3bn annual cost of the relief goes to just a handful of individuals.
Having acknowledged all of those problems, it’s therefore very disappointing that the Government has failed to scrap it and has instead opted to restrict the relief from £10m to £1m.
There is an overwhelming body of evidence that indicates the relief does not achieve its policy objectives, that it’s extremely expensive, misguided, poorly