Entrepreneurs’ relief (ER) enables business owners to pay a reduced 10% rate of capital gains tax (CGT) on all gains on qualifying assets, rather than the standard 20% rate. Scrapping the relief would save the government approximately £3bn per annum, which could be invested into initiatives or reliefs that encourage business start-ups or scale-up activity.

Since 2017 AAT has repeatedly urged the government to scrap entrepreneurs’ relief. Since then various other organisations, perhaps most notably the Institute for Fiscal Studies and Resolution Foundation, have called for the same.

Discourages entrepreneurialism