Entrepreneurs' Relief and the 2020 Budget

If the media reports are accurate, then the predictions for the 11th March’s Budget could have a fundamental impact on business owners. With entrepreneurs' relief (ER) at risk of reform, many business owners could be faced with an increase in tax following the sale of their business, be that a 100% disposal or a management buy-out.

ER was initially designed and introduced with the intention of encouraging entrepreneurs to invest in and boost the small business market. However, certain studies by independent bodies have suggested that the relief does not appear to have encouraged investment into start-up or growing businesses, nor the preservation of existing businesses from breaking down in the event of a succession. This, coupled with the fact that the tax cost of ER is greater than any of the other reliefs, Government are under pressure to look at ER, following their pledges to generate additional capital to fund the announced spending promises.

Darren Thompson, Meridian Director comments, "It is absolutely a time of uncertainty for business owners and it is fair to assume that this key tax relief will come under scrutiny, so it is worth taking advice and planning for the future of your business accordingly."

At Meridian we are experts in providing focussed guidance as deal strategists, project managers and transaction negotiators. With fundamental technical knowledge of various types of transactions and years of successful deals experience, we work alongside business owners and management teams, determining their strategic aims and are committed personally to deliver their ambitions, advising them throughout their business journey. 

We recognise that every business is unique, and to advise you on the best outcomes, we need to understand all aspects of what makes your business tick – not just the numbers! All our transactions are director led, and our ‘next step thinking’ approach helps us to see the bigger picture and gain an in-depth understanding of what is best for our clients and the strategic direction of their business.

Contact us for a free no obligation meeting.