Just over a week to go to the budget on 11 March and there are reports in the media about changes to or the abolition of entrepreneurs relief (CGT 10% ont 20%).  This was introduced in 2008 and replaced a taper releif arrangement - for me the majority of the clients I have dealt with (SME's) have not set up business because of the captial gains tax advantage but for other reasons.  When it comes to a sale whilst paying more tax might not be great it can be mitigated by preparing properly for a sale.  So many owners tend to want to sell 'immediately' and dont plan (eg protecting their IP, ensuring contracts are in place, having a good spread of customers and suppliers and most importantly having a good senior management team) - doing this can create more interest in the business, some competition to purchase it and ultimately a higher sale price.

Undoubtedly in my mind there will be a change (perhaps an increase in the rate or a reduction in the lifetime limit which is currently £10m) - we will have to wait and see - but also perhaps this might be a pre cursor of other tax changes such as IHT for shares in private companies and agricultural interests.

Please be not you should seek advice from a qualified tax advisor as the areas of CGT and IHT are complicated - AS Advisory Ltd are not tax advisors.