KPMG 2016: Osborne continues to impress entrepeneurs | KPMG | UK

Budget 2016: Osborne woos entrepreneurs and external investors

KPMG 2016: Osborne continues to impress entrepeneurs

Dermot Callinan comments on changes made to Capital Gains Tax.


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Commenting on the changes to Capital Gains Tax Dermot Callinan, head of Private Client, commented:

“The existing generous tax reliefs for entrepreneurs are getting better still.

“Entrepreneurs that work for a company and own at least 5% of the shares currently have a "lifetime" cap of £10m of gains which qualify for the 10% rate. The Chancellor now proposes a similar incentive, that is available only to external investors who do not work for the company or sit on the board, that will also be subject to a lifetime limit set at £10m.

“Whilst this is not a doubling-up of the existing entrepreneurs relief, it is possible to be an entrepreneurs relief investor in one company and qualify for investor relief in another. There will have to be anti-avoidance rules to investment made for genuine commercial purposes.”


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