February 2nd, 2020 / Insight posted in Articles, MKS News

The Sunday Times: Tim Stovold considers the impact of the government’s proposed changes to entrepreneurs’ relief

As the Chancellor prepares to cut entrepreneurs’ relief in March’s Budget, he is caught in a backlash from SMEs affected. A popular countermeasure has been for owners to sell to employees so as not to pay tax on its sale. The ER reductions could see business owners being discouraged from putting cash into the business for expansion. Tim Stovold says: “If that’s the logic given by the Treasury, it doesn’t reward risktakers. All entrepreneurs ought to throw in the towel and go and work for the civil service and take a risk-free final-salary pension, rather than think about creating wealth or employment for others.”

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