Chancellor’s Entrepreneur Relief name change will spread confusion and isn’t helpful to small business, warns Jarrovian Wealth
The reduction of the lifetime limit for Entrepreneurs’ Relief from £10 million to £1 million, announced by the Chancellor in his Budget last month, was a major blow to small businesses. But it is not the last of changes proposed to this important tax benefit.
What Rishi Sunak failed to disclose was plans to re-brand Entrepreneurs’ Relief to the rather clunky Business Asset Disposal Relief – changing something that sounded (and is) a positive relief for those creating new ventures, jobs and keeping the economy running – into something that sounds a negative or bad thing.
There are also concerns that the new name could cause confusion. The word ‘asset’ in the title suggests it will be available for a bigger range of purposes than it actually is – it won’t.
Graeme Price, Co-Founder and CEO of Jarrovian Wealth, says that entrepreneurs don’t need any more tweaks and changes that could add yet more confusion to an already complex set of tax relief rules.
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Chris SalacinskiDirector & Financial Planner