Sarah Bradford examines the impact of the changes to entrepreneurs’ relief announced in Budget 2018.
Entrepreneurs’ relief (ER) is a popular form of capital gains tax relief, which applies on the disposal of qualifying business assets.
As with most reliefs, the availability of ER is contingent on certain conditions being met. The effect of the relief is that qualifying gains up to the lifetime limit (set at £10 million for disposals on or after 6 April 2011) are taxed at 10%. Spouses and civil partners each have their own lifetime limit; this, together with the ability to transfer assets between spouses at a value that gives rise to neither a gain nor a loss, presents tax planning opportunities.
At the time of Budget 2018, the Chancellor unveiled some changes to the relief, tightening the qualifying conditions in the
