Shifting sands

Stephen Woodhouse and Charlotte Fleck consider the recent changes to Entrepreneurs’ Relief over the past year

Entrepreneurs’ Relief (ER) has become a focus for reform over the past year. Some have recommended that it be abolished on the basis that the availability of the relief does not sufficiently influence the decisions of entrepreneurs to establish new ventures while the costs of the relief (estimate at £2.7bn) could be better used in other areas – see Resolution Foundation Report.

The relief has survived the threat of abolition – for now – but with significant changes.