Although the 2008 Budget contained some positive measures for entrepreneurs in the UK, they ‘fell well short of what was taken away’ by the abolition of taper relief and changes to the treatment of non-domiciles, Tony Cohen, Deloitte head of UK entrepreneurial business, says.
‘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%...this translates to a potential lifetime tax benefit of £80,000,’ he said.
‘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 businesses recruit and retain top talent.
Cohen said Deloitte supported the government’s introduction of a £12.5m fund to encourage women entrepreneurs and looked forward to hearing more details about the key objectives of the fund.
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