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Entrepreneur's relief has had some significant changes since it was first introduced, the latest being in this year's Budget, soon to be enacted in the Finance Act. It is also being re-named Business Asset Disposal Relief (BADR). The rules on what and who qualifies remain the same apart from some provisions to prevent forestalling the reduction in limit.

The main change is to reduce the lifetime limit for qualifying gains to £1m from £10m. This may not affect a lot of people who have been running a small business which they are selling on retirement. It is most likely to impact on owners of larger businesses, farmers with valuable land or serial entrepreneurs who sell one business and start another. HMRC estimate that 80% of those using the relief will be unaffected.

The Government's stated purpose of this, according to its Budget documents, was to improve the effectiveness and value for money of the relief. The Government also claimed it would encourage genuine risk takers and entrepreneurs in a fair way.

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  1. Franklin S
    Posted 23-Jun-2021 at
    Useful to know few will be affected.
    0
  2. Alan E
    Posted 28-Dec-2020 at
    Like another commentator, it would have been fairer to have implemented the change on a gradual basis or even apply different tax rates depending on the size of the gain, between, say,10% and 20% in 2% increments.
    0
  3. Antonella D
    Posted 27-Dec-2020 at
    The reduction from £10m to £1m is major, maybe it could have been more gradual.
    0
  4. Tim S
    Posted 20-Dec-2020 at
    The reduction of the lifetime limit will seriously effect serial investors and the amount of tax they will pay.
    0
  5. Victor R
    Posted 23-Nov-2020 at
    The impact will be on mainly wealthier people
    0
  6. Gisela M
    Posted 30-Oct-2020 at
    It's fair - £1m is enough of a tax free gain. The rich are rich enough..
    0
  7. Rosemary M
    Posted 25-Sep-2020 at
    only 20% of entrepreneurs will be effected. I wonder how much revenue this will generate for the government
    0
  8. Manish B
    Posted 16-Sep-2020 at
    Govt. by this target big company owners and wealthy individual.
    0
  9. Hasmita P
    Posted 14-Sep-2020 at
    Will affect larger companies the most
    0
  10. Tabarak H
    Posted 06-Sep-2020 at
    The relief will effect mostly larger companies.
    0
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