The end for entrepreneurs’ relief?

According to The Times (18 January), Boris Johnson has signalled that entrepreneurs’ relief could be scrapped in the March Budget.

‘I have to tell you the Treasury is fulminating against [CGT entrepreneurs’ relief] because there are some people who are staggeringly rich who are using that relief to make themselves even more staggeringly rich,’ Johnson reportedly said.

However, James Austen, partner at Collyer Bristow, noted on his firm's website that, notwithstanding the speculation, ‘the nature of any proposed changes to, or the outright abolition of, entrepreneurs’ relief is still unknown. In parallel, there is not yet any information about whether the chancellor will increase the headline rate of CGT (which would amount to a double hit for business owners).’

‘Just as importantly, it is not clear when changes to entrepreneurs’ relief would take effect,’ Austen said. ‘All we can say for now is that the prudent business owner would not bet against changes being announced in the March Budget, to take effect from 6 April this year.’