More than 1,500 UK entrepreneurs and business leaders have signed a letter to Chancellor Rachel Reeves, urging her to reconsider proposed changes to business asset disposal relief (previously known as entrepreneurs’ relief), ahead of the budget on October 30.
The letter warns that modifying or scrapping the relief could severely undermine the entrepreneurial spirit that has driven UK economic growth and innovation.
Currently, business asset disposal relief allows entrepreneurs to pay a reduced tax rate of 10% on qualifying gains, up to a lifetime cap of £1 million. However, this relief is believed to be at risk as the government seeks ways to cut costs and repair public finances. The signatories of the petition argue that removing or limiting the relief would send the wrong message to entrepreneurs and investors, making the UK a less attractive place to build a business.
Prominent signatories
The petition, organised by venture capital firm Fearless Adventures, co-founded by Dominic McGregor, includes signatures from leading entrepreneurs such as Peter Roberts, founder of Puregym; Will Butler-Adams (pictured), managing director of Brompton; and Jennifer Roebuck, co-founder of Tortilla. They argue that the relief provides a crucial incentive for entrepreneurs to take risks when starting businesses and is vital for fostering economic growth.
The letter acknowledges the importance of tax revenue to fund public services but contends that taxing entrepreneurial gains at the same rate as regular income would deter business creation. In addition to calling for the relief to be retained, the signatories are asking Reeves to restore the lifetime limit to £10 million, which was reduced to £1 million in 2020 by then-chancellor Rishi Sunak.
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