Capital gains entrepreneurs’ relief restricted

Capital gains entrepreneurs’ relief restricted

There were many rumours in the run up to the Budget that Capital gains tax entrepreneurs’ relief that allows certain business owners to pay just 10% tax on disposal would be abolished.

Rather than abolish the relief the Chancellor has announced that from 11 March 2020 onwards the relief will only be available against the first £1 million of lifetime gains instead of the previous £10 million limit.

The relief will therefore still benefit most small business owners.