Sajid Javid set to curb ‘entrepreneurs relief’ in Budget

[ChimpMaster]

Subscribe to read | Financial Times

Javid set to curb ‘entrepreneurs relief’ in Budget - BusinessTelegraph

Hopefully you can open one of these links. Both are the same report.

Some interesting snippets for discussion, including:
One senior government figure said ministers were more likely to recalibrate the tax break than to remove it altogether.
Craig Beaumont, director of external affairs at the Federation of Small Businesses, said the relief should be reformed in order to focus on helping smaller entrepreneurs.
“Unlike employees, most don’t have a pension and have been planning to sell their business to fund their retirement,” he said. “A reform to limit ER to £1m, for example, would align well with the pensions pot limit.”

Still, surprised that this might happen in March, given that a review was promised first.

[jamesbrown]

Yeah, I noticed that. Agree, it seems to contradict the promise for a review. However, they could be two of several options proposed in a review, rather than something implemented on budget day.

[amrhady]

It does seem to indicate that ER is not going away. Hopefully that curb will just be a decrease of the lifetime amount that can be claimed, rather than an increase of the 10% CGT.

Boris did say that it's making the very rich even more rich, so I'd like to think that the changes wouldn't affect me since I am neither

[Maslins]

Yeah I read that...and as whilst with everything at this stage it's still just speculation, it does paint a picture far better than some on here fear.

Eg if they did just make the lifetime limit £1m instead of £10m, then that would have virtually zero impact on what we do.

From my selfish perspective, we don't want it to go of course. However, I do agree with the general premise that I don't think entrepreneurs relief does anything to encourage entrepreneurial actions. It does just mean people in the position of having something very valuable that they sell/liquidate, hence are going to receive a huge wad of cash, get to pay very little tax on it. I can't understand the justification of it being ~10% tax for that, and ~50% tax on very big salaries (once NICs etc considered).

[Lance]

Boris did say that it's making the very rich even more rich, so I'd like to think that the changes wouldn't affect me since I am neither

When politicians talk about the rich, they don't meet the actual rich. They mean those that are just a bit richer than the people they're talking to. As Boris is a populist, talking to thick as mince little Englander's, racists and ex-Labour northerners,,,,, We are the rich he's talking about.
The top 5% (Labour's "view" of rich) are 1 in 20 people. That's probably more than half the people who drink in your local pub.
The top 1% (Tories "view" of the rich) is maybe 1 in 20 of the people in your local pub (not the landlord obviously).

The politics of envy is a deceitful thing.
And yes you're in the firing line for that politics as is probably 100% of CUKers.

[JohntheBike]

When politicians talk about the rich, they don't meet the actual rich. They mean those that are just a bit richer than the people they're talking to. As Boris is a populist, talking to thick as mince little Englander's, racists and ex-Labour northerners,,,,, We are the rich he's talking about.
The top 5% (Labour's "view" of rich) are 1 in 20 people. That's probably more than half the people who drink in your local pub.
The top 1% (Tories "view" of the rich) is maybe 1 in 20 of the people in your local pub (not the landlord obviously).

The politics of envy is a deceitful thing.
And yes you're in the firing line for that politics as is probably 100% of CUKers.

what value of assets would you say classes someone as rich? When my wife inherited our house in 1979, it was subject to inheritance tax. It isn't anymore and is never likely to be now, unless a Labour government gets in power again. Just to remind you, I live in a deprived Labour voting area in Wales.

[WTFH]

what value of assets would you say classes someone as rich? When my wife inherited our house in 1979, it was subject to inheritance tax. It isn't anymore and is never likely to be now, unless a Labour government gets in power again. Just to remind you, I live in a deprived Labour voting area in Wales.

Assets or earnings?

Someone could own a raft of vintage Jaguars and live in a council house.
Someone could be a disguised employee, doing income splitting, complaining about people who pay mortgages but don't get MIRAS, complaining about people who have to pay for their education, etc, and just because that person (falsely) claims not to be wealthy, doesn't mean that he isn't.

[Lance]

what value of assets would you say classes someone as rich? When my wife inherited our house in 1979, it was subject to inheritance tax. It isn't anymore and is never likely to be now, unless a Labour government gets in power again. Just to remind you, I live in a deprived Labour voting area in Wales.

It's not me that classes someone as rich.
I understand the difference between wealth and income as do you.

The point of my post is that when politicans class someone as wealthy, it is political NOT useful. And generally the politics of envy.

[jamesbrown]

Some pushback here:

Sajid Javid wavers over raid on entrepreneurs’ relief tax break | Business | The Sunday Times

[AtW]

None of those ****ers mention that ER was introduced after unlimited Business Taper Relief was eliminated - they already massively increased taxation with that and ER was supposed to offset at least some of this day light robbery.

People made long term investment decisions and now likely to face situation when they’d have to sell quick.