{"id":45913,"date":"2019-08-21T08:31:39","date_gmt":"2019-08-21T07:31:39","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=45913"},"modified":"2019-08-21T08:31:39","modified_gmt":"2019-08-21T07:31:39","slug":"tax-reform-of-the-day-abolish-entrepreneurs-relief","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2019\/08\/21\/tax-reform-of-the-day-abolish-entrepreneurs-relief\/","title":{"rendered":"Tax reform of the day: abolish Entrepreneur&#8217;s Relief"},"content":{"rendered":"<p>To add <a href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2019\/08\/20\/tax-reform-of-the-day-abolishing-the-domicile-rule\/\">another tax reform to my series<\/a> on how to reform the tax system to reduce inequality in the UK, this one is yet another obvious candidate.<\/p>\n<p><strong>Abolish capital gains tax Entrepreneur's Relief<\/strong><\/p>\n<p>Capital gains tax Entrepreneurs Relief does, in essence, <a href=\"https:\/\/www.gov.uk\/entrepreneurs-relief\" target=\"_blank\" rel=\"noopener\">reduce the rate of gains tax by those who sell privately owned businesse<\/a>s. In most situations they pay 10% on their gains rather than 20%. The tax rate is halved.<\/p>\n<p>In the last year <a href=\"https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/821592\/Table_4.pdf\" target=\"_blank\" rel=\"noopener\">for which data is available<\/a>\u00a0the relief cost\u00a0as much as the tax paid on these disposals, or \u00a32.36 billion. Of this \u00a31.73 billion went to just 4,000 people, at a tax savings of more than \u00a3430,000 each, on average.<\/p>\n<p>That is wholly unjust. It is a simple boost to those already wealthy. Remember, these people had by definition just picked up gains of in excess of \u00a34 million each. And as I <a href=\"http:\/\/www.taxresearch.org.uk\/Blog\/2015\/10\/30\/in-2013-14-just-3000-people-got-tax-relief-of-at-least-600000-each-at-a-total-cost-of-at-least-1-8-billion\/\" target=\"_blank\" rel=\"noopener\">have argued before<\/a>, the relief makes no sense. It does not encourage entrepreneurial activity at all. It encourages short-termism and selling out rather than developing entrepreneurial activity, both of which are the opposite of what the UK needs.<\/p>\n<p>Nothing about this relief makes any sense at all. It has to go.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>To add another tax reform to my series on how to reform the tax system to reduce inequality in the UK, this one is yet<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2019\/08\/21\/tax-reform-of-the-day-abolish-entrepreneurs-relief\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,97,179],"tags":[],"class_list":["post-45913","post","type-post","status-publish","format-standard","hentry","category-capital-gains-tax","category-tax-justice","category-tax-reforms"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/45913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=45913"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/45913\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=45913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=45913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=45913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}