Budget 2020: Entrepreneurs' Relief lifetime limit cut to £1m

In his inaugural Budget speech this afternoon (11 March), new Chancellor described Entrepreneurs' Relief in its current form as "expensive", "ineffective" and "unfair". Despite calls to scrap the relief entirely, Sunak said he would instead cut the lifetime limit by £9m, from £10m to £1m. Entrepreneurs' Relief is applied when a business owner decides to sell or liquidate their business. It enables company founders selling their businesses to pay capital gains tax at a rate of 10% as opposed to the typical 20% that usually applies to gains of up to £10m. Prudential pensions and tax ...