Entrepreneurs' relief limit to increase.

It was announced in the recent Budget, delivered on 23rd March 2011 that the lifetime limit for entrepreneurs' relief was to be doubled from £5m to £10m with effect from 6th April 2011. This means that the 10% rate for capital gains tax will be applied to a further £5m. Although unexpected, especially after the limit was increased from £2m to £5m in the June 2010 budget, this was a very welcome addition.

The Chancellor made it clear that by making this change he hoped that businesses would be encouraged to grow and benefit from their efforts. Business owners could save up to £900,000 as a result of the change.

With a limit of £10m to play with the change will undoubtedly encourage entrepreneurs to grow and sell several businesses in their lifetime...which can only be good for the economy.

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