20th March 2020
Following Budget 2020, Finance Bill 2019-21 has now been published.
The Bill confirms the Budget announcements including, from 11 March 2020, the reduction to the lifetime limit for Entrepreneurs’ Relief (ER) from £10m to £1m. ER allows a 10% rate of Capital Gains Tax (CGT) to those disposing of business interests, subject to a number of conditions. The reduction is a disappointment to many, but also a pleasant surprise for many, as we believed the relief would be abolished altogether.
In spite of this announcement, after a confusing and extraordinary week, it appears that ER will however not survive past 5 April 2020 after all: it is to be renamed Business Asset Disposal Relief, (BADR), and subject to meeting the same conditions will allow a 10% CGT rate on lifetime gains of up to £1 million.
For details of financial and tax provisions to ease the financial impact of COVID-19, please visit our dedicated webpage here.