Capital gains tax: increase in lifetime limit on entrepreneurs' relief
The lifetime limit on gains qualifying for entrepreneurs' relief will increase from £1million to £2million.
Who will be affected?
Individuals and trustees of settlements who qualify for the relief. For trustees, the limit is that of the beneficiary who meets the requirements in order for the trustees to claim the relief.
Legislation will be introduced in the 2010 Finance Bill and will affect qualifying disposals on or after 6 April 2010.
The new measures result in a doubling of the amount of qualifying gains available to be taxed at an effective rate of 10%, rather than the main CGT rate of 18%, and are to be welcomed.