As you are aware, the Chancellor will be delivering his first post Brexit budget on 11 March 2020.
We understand from various discussions that we have had recently with reasonably well informed individuals that there is the very real possibility that the Government will look to reduce the limit for Entrepreneurs’ Relief from the current limit of £10 million to just £1 million. Initially it was thought that the Government would look to abolish the relief in its entirety, but following protests from the business sector, the Chancellor is thought to have reviewed this policy. This has yet to be confirmed as has the timings that would apply to any changes.
The purpose of this briefing note is merely to highlight the potential change in this regard, given that the potential tax charge for some clients should this proceed could be significant. It is perhaps more relevant to any of your clients who were contemplating using the Members’ Voluntary Liquidation route during the next twelve months.
Should you wish to discuss this in more detail, then please contact anyone of either Richard Saville, Andrew Cordon, Jill Howsam or James Everist.