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Tony Cohen, Head of UK
Entrepreneurial Business at Deloitte, said: “On the whole, today’s
Budget contains some positive measures for entrepreneurs in the UK
although they fall well short of what was taken away in the
Pre-Budget Report through the abolition of Taper Relief and the
changes in the treatment of non-domiciles.”
“As expected, the ‘Entrepreneurs Relief’ was
confirmed which effectively taxes the first £1m of lifetime gains
arising from the disposal of interests in trading businesses at 10%
rather than at the new rate of 18% which will apply from 6 April.
This translates to a potential lifetime tax benefit of £80,000.
“More pleasingly, to encourage investment in
entrepreneurial business an increase in the maximum investment
allowed under the Enterprise Investment Scheme to £500,000 is a
welcome step. Also to be welcomed is an increase in the upper market
limit to £120,000 for options granted under the Enterprise
Management Incentives Scheme which should assist entrepreneurial
business recruit and retain top talent.
“Other positive news for entrepreneurs includes the modest
increase in funds available for the Small Firms Loan Guarantee
Scheme and the changes to the capital allowances provisions which
allow an automatic write-off once the pool reaches a de minis of
£1,000.
“As we support the Government taking steps to promote
entrepreneurship, the introduction of a £12.5m fund to encourage
women entrepreneurs is of interest and we look forward to hearing
more details about the key objectives of the fund.”
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