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."
For further comment from Tony Cohen please call our Budget press hotline: 020 7007 3333.
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