Entrepreneurs relief scale back ‘just madness’ – Miles Dean
Miles Dean, Head of International Tax, comments in relation to the news that entrepreneurs tax relief will be scaled back by 90%, in CityWire Wealth Manager.
Miles’ comments were published in CityWire Wealth Manager, 12 March 2020, and can be found here.
“The decision to scale back entrepreneurs relief (ER) by 90% is ‘madness’ in a ‘Labour-lite Budget’ one tax specialist has said.
Miles Dean, head of international tax at Anderson Tax UK, said that entrepreneurs relief was an easy target in a tax and spend Budget that sends out a negative message to people setting up a new businesses.
Chancellor Rishi Sunak announced yesterday that ER on capital gains tax (CGT), which costs the Treasury £2.6bn a year, will be scaled back from a £10m lifetime allowance to £1m…
Dean said: ‘Madness, just madness. Let’s be sensible. The Budget was a Labour-lite budget, tax and spend, and spend the chancellor did. If you spend you have to tax and ER was an easy target.’
‘One that would appeal to the government’s former Labour voters no doubt, as ER has been dressed up as being nothing more than a giveaway for the already rich.’
Sunak described the tax relief as ‘expensive, ineffective and unfair’, with three quarters of the relief going to just 5,000 people.
‘Politicians must consider what this means commercially and what it will do for an economy that relies very heavily on entrepreneurs. It is a great shame though. The message is loud and clear from this government: take all the risk you like in setting up a new business, it doesn’t count for anything,’ Dean added. “