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11 Feb 2020 Industry News Legislation

Government warned against scrapping Entrepreneur’s Relief

The government has been warned against scrapping Entrepreneur’s Relief in the upcoming Budget.

The relief, which can considerably reduce the amount of capital gains tax paid on the sale of a business, is seen as a likely candidate for reform. Boris Johnson described the relief earlier in the year as helping the “staggeringly rich” to become even richer.

Amongst those warning against its removal is, however, the British Chamber of Commerce. Suren Thiru, head of economics at the BCC, said “any reduction risks undermining some of our most promising young firms and entrepreneurs by stifling investment”. The prospect of the relief being scrapped has also provoked an outcry from small business owners.

According to reports in the Sunday Times, the Chancellor is reviewing his plans for the relief in light of the backlash.