Policy paper

Change to the Entrepreneurs' Relief lifetime limit for Capital Gains Tax

This measure introduces a reduction in the Entrepreneurs' Relief lifetime limit.

Documents

Draft legislation

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Explanatory note

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Details

The Entrepreneurs’ Relief lifetime limit is reduced from £10 million to £1 million. This will apply to qualifying disposals made on or after 11 March 2020 and to certain disposals made before 11 March 2020.

Since Budget Day, this measure has been revised to:

  • include an additional anti-forestalling rule
  • rename the relief ‘Business Asset Disposal Relief’ for tax years 2020-21 onwards

The revised legislation is included in the Finance Bill published on 19 March 2020.

Further details on the anti-forestalling rules can be found in the technical note for this measure.

Published 11 March 2020