Chancellor cuts the entrepreneurs’ relief lifetime limit to £ 1 million
The new chancellor’s first budget on 11th March seems like a distant memory now, with today’s announcements to support UK business significantly overshadowing the budget measures, says Nimesh Shah a partner at leading accounting and tax advisory firm Blick Rothenberg.
He added: ‘The present situation for UK business is critical, and the huge package of support announced by Rishi Sunak should be applauded.
‘However, the government also needs to consider the long-term impact and past COVID-19, when it will undoubtedly need look to the UK’s entrepreneurs to kick-start the economy.
With that said, will Sunak’s hasty decision to cut the entrepreneurs relief lifetime limit to £1 million, without review or consultation, turn out to be an own goal?’
He added: ‘The UK’s entrepreneurs were dismayed to hear about the extreme cut to the valuable relief at the budget, following pressure from some ministers and so called think tanks that the relief was costly and only benefited the wealthy.
‘The estimated £6.3 billion saving to the treasury over 5 years pales into insignificance relative to the measures subsequently announced. There is still time for Sunak to make a u-turn to show long-term encouragement to the UK’s entrepreneurial community on the road to future economic recovery.’
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