Commenting on the announcement in today’s Budget that Entrepreneurs’ Relief (ER), has been reviewed to reduce the £10 million lifetime allowance to £1million, Jonathan Boyers, head of M&A for KPMG in the UK, said.
“Today’s changes to Entrepreneur’s Relief signals that the Government is shifting its tax policy focus from the end to the beginning of the entrepreneur’s journey, all with the purpose of incentivising innovation and business investment.
“For those business owners who were looking to exit over the weeks and months ahead, it is unlikely that today’s announcement will see them dramatically alter their plans – after all, they will still be paying a reduced rate of capital gains tax. Instead, they will be more focussed on whether the anticipated disruption caused by Covid-19 and associated volatility on the stock markets will be significant enough to disrupt underlying trading performance, and therefore affect the appetite of trade and private equity buyers.”
Follow us on twitter: @kpmguk #Budget2020
For further information please contact:
KPMG Press office
Tel: +44 (0) 207 694 8773
Katy Broomhead, KPMG Corporate Communications
Mobile: 07824 537963
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 17,600 partners and staff. The UK firm recorded a revenue of £2.40 billion in the year ended 30 September 2019. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.