Risk-takers in fear of losing entrepreneurs’ relief tax break – Miles Dean
Miles Dean, Head of International Tax, comments in relation to the Treasury’s plans to scrap entrepreneurs’ relief tax break, in The Sunday Times.
Miles’ comments were published in The Sunday Times on 2 February 2020 and can be found here. They were also carried as a letter to the editor, here. These can both be found on pages 9 and 10 of the print edition.
“Mike Wheeler remembers the moment he put everything on the line for his business. It was 2008 and his car parts manufacturer was buying a rival out of administration. A large loan was required to make the deal happen.
Wheeler is just the sort of business owner that the government claims to support. Truckman, which was set up 17 years ago, pays about £400,000 in corporation tax each year and has brought skilled jobs to a part of the country desperately in need of them.
Yet plans being considered by the Treasury to scrap a tax break worth £2.4bn a year to entrepreneurs mean Wheeler’s risk-taking might be for nothing.
Entrepreneurs’ relief, which allows founders and certain shareholders to pay a reduced 10% capital gains tax rate if they sell their business, is under threat, with an announcement expected in next month’s budget. Boris Johnson has called the relief a means for the “staggeringly rich” to make themselves even wealthier…
However, others say anything but tweaks to entrepreneurs’ relief would send a signal that the government is not on the side of business owners. “It beggars belief,” said Miles Dean at the adviser Andersen Tax. “Your lifetime’s work of blood, sweat and tears and you get £1m at 10%?””