Another tax relief that may be further restricted or even abolished is CGT entrepreneurs relief. This relief allows business owners to pay just 10% CGT on the first £10 million of capital gains when they dispose of their business and was tightened up in the Autumn 2018 Budget.
When first introduced, the relief only applied to the first £2 million of gains but the limit has been increased twice since 2008 to the current lifetime limit so the relief may be limited again in the March Budget.
The Conservatives’ general election manifesto signalled the government would curb or scrap the relief, but it is popular with many Tory MPs and party members.
Rishi Sunak is expected to target entrepreneurs’ relief, a tax break which halves the capital gains tax paid when people sell their businesses.
The move was attacked by some business leaders who claimed it would hurt entrepreneurship, as well as Conservatives MPs concerned about a backlash against Mr Sunak’s first Budget.
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