The end of ER?

[ChimpMaster]

Entrepreneurs' tax break fails to boost investment, finds IFS | Politics | The Guardian

Could be the usual 'leak' from government to prepare everyone for a big change to ER in the upcoming budget.

[pr1]

Before Javid’s first budget next month, the Institute for Fiscal Studies (IFS) said low rates of capital gains tax on business income did not encourage companies to invest more in the country but did provide large savings for company owners.

The IFS said entrepreneurs’ relief cost the government about £2.4bn a year in lost income and was not working as intended.

Could be the usual 'leak' from government to prepare everyone for a big change to ER in the upcoming budget.

100%

[craigy1874]

Could they be timing the removal of ER to coincide with thousands of PSCs closing down their companies?

I think so!

[wattaj]

Could they be timing the removal of ER to coincide with thousands of PSCs closing down their companies?

I think so!

Agreed.

[edison]

Could they be timing the removal of ER to coincide with thousands of PSCs closing down their companies?

I think so!

Could well be.

Phasing out of ER has been rumoured for a while now.

It's debatable whether ER was really designed for one man PSCs.

[yMyjgT]

I'm about to interview for a permie role, and would then wrap up the company. Sods law ER will be scrapped before I'd have chance to make use of it.
How quickly would a phasing out take I wonder?

[ChimpMaster]

If Government/HMRC want to get of ER then it will become effective immediately so as to prevent anyone taking advantage (in their eyes) of ER.

In any case, the upshot is that you will probably still be able to MVL but there won't be any claim for ER, which means that you will be liable to the usual CGT rates. This will be 20% for most people rather than 10% under ER.

[TheCyclingProgrammer]

I thought the normal CGT rate for basic rate tax payers is 10%?

[yMyjgT]

you will probably still be able to MVL but there won't be any claim for ER, which means that you will be liable to the usual CGT rates. This will be 20% for most people rather than 10% under ER.

It would be so frustrating to be "just miss out". An additional 10% would mean 5 figures extra tax for me, and the first figure isn't a 1

[Maslins]

I thought the normal CGT rate for basic rate tax payers is 10%?

Yes, but I imagine the typical person going through an MVL will either:
1) have already taken divis up to top of basic rate band (as 7.5% rather than 10%), and/or
2) is going into a high paid permie/umbrella role, so will eat up basic rate band there.