Estate Planning Conference

Entrepreneurs’ relief

A basic point but still important is that the past year has seen substantial increases in entrepreneur’s relief: first from £1 million to £2 million from 6 April 2010; and then from £2 million to £5 million from 23 June 2010.

Originally the maximum lifetime tax saving was £80 000; now it is £900 000 (£5 million x 18% (28% – 10%)). Tax planning around entitlement to this relief is therefore now much more important. Will the amount of relief rise in future?

The relief might be maximised in family situations if children are involved in the business and can be given shares either in their own name or via a trust (bearing in mind the need to satisfy all the conditions and for the child to join in the election with the trustees) with a view to more relief being available on a...