Small businesses have been given a partial boost by the Chancellor.
The income tax relief threshold on investments is raised by 25% to £500,000 from £400,000. The employee share limit for tax relief under the Enterprise Management Incentive scheme will also increase from £100,000 to £120,000.
Despite the boost, entrepeneurs will still pay a flat rate of 18% on capital gains. Only those with more than a 5% stake in a company will qualify for the entrepreneurs’ relief of a 10% tax rate on the first £1m of business asset gains.
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