Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Entrepreneurs petition chancellor to maintain business tax relief

by October 24, 2024
October 24, 2024
Entrepreneurs petition chancellor to maintain business tax relief

More than 1,500 UK entrepreneurs and business leaders have signed a letter to Chancellor Rachel Reeves, urging her to reconsider proposed changes to business asset disposal relief (previously known as entrepreneurs’ relief), ahead of the budget on October 30.

The letter warns that modifying or scrapping the relief could severely undermine the entrepreneurial spirit that has driven UK economic growth and innovation.

Currently, business asset disposal relief allows entrepreneurs to pay a reduced tax rate of 10% on qualifying gains, up to a lifetime cap of £1 million. However, this relief is believed to be at risk as the government seeks ways to cut costs and repair public finances. The signatories of the petition argue that removing or limiting the relief would send the wrong message to entrepreneurs and investors, making the UK a less attractive place to build a business.

Prominent signatories

The petition, organised by venture capital firm Fearless Adventures, co-founded by Dominic McGregor, includes signatures from leading entrepreneurs such as Peter Roberts, founder of Puregym; Will Butler-Adams (pictured), managing director of Brompton; and Jennifer Roebuck, co-founder of Tortilla. They argue that the relief provides a crucial incentive for entrepreneurs to take risks when starting businesses and is vital for fostering economic growth.

The letter acknowledges the importance of tax revenue to fund public services but contends that taxing entrepreneurial gains at the same rate as regular income would deter business creation. In addition to calling for the relief to be retained, the signatories are asking Reeves to restore the lifetime limit to £10 million, which was reduced to £1 million in 2020 by then-chancellor Rishi Sunak.

Conflicting views on the relief

While the signatories emphasise the importance of the relief for encouraging risk-taking and business innovation, critics argue that it is poorly targeted. Both the Resolution Foundation, a left-leaning think tank, and the Institute for Fiscal Studies have called for the relief to be scrapped, citing concerns about its cost and effectiveness. The relief has been labelled “Britain’s worst tax relief” by some experts, arguing that it disproportionately benefits wealthier individuals without sufficiently stimulating economic growth.

However, entrepreneurs maintain that removing or limiting the relief would harm not just high-profile founders but everyday business owners such as restaurant operators, mechanics, and designers, who rely on it as an incentive to take the financial leap required to launch a business.

Concerns from the Federation of Small Businesses

The Federation of Small Businesses (FSB) echoed these concerns, warning that increasing taxes on entrepreneurs when they sell their businesses would stifle business creation and innovation. Tina McKenzie, the FSB’s policy chairwoman, pointed out that many entrepreneurs invest their life savings into their ventures, making them vulnerable if they cannot secure a fair sale. McKenzie stressed that removing the relief could discourage people from starting new businesses and taking the risks necessary for economic growth.

 

Read more:
Entrepreneurs petition chancellor to maintain business tax relief

0
FacebookTwitterGoogle +Pinterest
previous post
US must weigh ‘military action against’ North Korean forces if invading Ukraine: House intel chair Turner
next post
UK nightclubs face extinction as 10 venues close per month, industry warns

You may also like

FTX Bankruptcy – How Does it Impact Other...

December 14, 2022

How Programmatic Advertising Can Increase Sales

December 16, 2022

Powervault secures £3.8 million to grow British-made electricity...

April 12, 2023

CBI business group boss Danker sacked after misconduct...

April 11, 2023

Kwarteng considers extending mortgage guarantee scheme after banks...

October 7, 2022

BT Scraps Digital Landline Switch Deadline Amid Vulnerability...

May 21, 2024

Iconic British Land Rover brand to be dropped...

April 19, 2023

What does the future of remote working look...

May 27, 2023

Ocean Harvesting to raise €500,000 for InfinityWEC Design...

March 20, 2024

7 Yacht party outfit ideas

July 31, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025
    • Three Years of Sounding the Debt Alarm at Cato and on the Debt Dispatch

      August 27, 2025
    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025
    • Bankruptcy, Hell, and Exit Barriers

      August 27, 2025
    • Trump’s DC Death Penalty Crusade Threatens More Tyranny of the Minority

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,246)
    • Politics (16,501)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved