Deloitte finds positives for entrepreneurs in Budget

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.

Further reading:

Budget 08: Avoidance swoop to plug economic gap

Budget reaction: Charity tax relief