The Chancellor, John Healey, has left headline capital gains tax rates unchanged in his Budget statement. That confirms earlier reports that he had decided against a rise. He has instead created a 10% "Founders' Relief" on lifetime gains of up to £10m, City AM and Portfolio Adviser report.
He has also cut the lifetime limit for Business Asset Disposal Relief from £1m to £500,000. Mr Healey says this means no change for three in four claimants. That figure has not been independently checked. The law firm Osborne Clarke says the maximum lifetime CGT saving under the relief is now £30,000.
"I believe that when business founders take that risk, build an exceptional company and create wealth for Britain, we should recognise that success and keep those people here to invest again," Mr Healey said.
The amount people can earn tax-free from a new venture rises from £1,000 to £3,000, the Guardian reports via Newsbeep. A new young entrepreneurs allowance will cover a year of living costs for young founders, according to The Intermediary. No amount or start date has been given. City AM also reports tighter corporation tax expensing rules, with no detail yet.
Michael Carter of Osborne Clarke told City AM: "Business Asset Disposal Relief has been cut back again". Will Dowsett of PwC told the paper the "proposed eligibility criteria remains onerous".