The latest changes to entrepreneurs’ relief
Legislation in Finance Bill 2016 is intended to correct the problems caused by Finance Act 2015. Kate Willis, technical officer at CIOT, explains.
As readers will be aware, Finance Bill (FB) 2016 includes draft legislation to amend the unintended consequences of Finance Act (FA) 2015 changes to entrepreneurs’ relief (ER). The CIOT and ICAEW have led stakeholder engagement with HMRC in considering the detailed technical changes needed to reverse these unintended consequences, which had the effect of denying ER in some genuine commercial situations.
The stakeholder group has continued its work with HMRC following the publication of the clauses on 24 March 2016. This article details some of the issues raised with HMRC.