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Entrepreneurs’ relief: the anti-forestalling rules

Although the reduction in the entrepreneurs’ relief lifetime limit from £10m to £1m was a straightforward change, detailed anti-forestalling rules in the Finance Bill mean that planning undertaken in anticipation of this will need to be carefully considered, writes Robert Langston (Saffery Champness).

Entrepreneurs’ relief (ER) has lasted for 12 years (it was introduced in 2008) replacing taper relief (which lasted for ten years from 1998) which in turn replaced indexation and retirement relief (retirement relief lasted for 13 years from 1985 until a phasing out from 1998). All of these reliefs delivered a similar type of CGT relief: a reduced rate of CGT on qualifying assets.

In Schedule 2 of the Finance Bill entrepreneurs’ relief has been renamed business asset disposal relief with the underlying mechanics remaining the same. The only change is the reduction of the lifetime limit on claims from £10m to...

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