Entrepreneurs’ relief (ER) abolished on business incorporations

It is fair to say that the removal of entrepreneurs’ relief (ER) on business incorporations was the ‘surprise’ rabbit out of the Chancellor, George Osborne’s hat in last month’s Autumn Statement, says Peter Rayney FCA, CTA

I remember receiving calls from a number of accountants in the days following the Autumn Statement 2014 querying whether this was in fact true! Sole traders, partnerships and limited liability partnerships (LLPs) had previously been able to sell their goodwill at a 10% capital gains tax (CGT) rate on incorporation for well over a decade now.  

It is well known that HMRC did not particularly like this form of tax planning.

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