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Daily Tax Report: International

U.K. Loses $3.1 Billion in Tax on ‘Entrepreneurs’ Relief’ Break

Oct. 21, 2019, 8:43 PM

A U.K. capital gains tax break for owner-managers who sell their businesses costs too much and doesn’t achieve its purpose, a think tank said in a new report.

The break, called Entrepreneur’s Relief, costs the government 2.4 billion pounds ($3.12 billion) a year relative to taxing gains at the full capital gains tax rate, according to the report from the Institute for Fiscal Studies.

  • The relief lets owner-managers pay a 10% capital gains tax instead of the standard 20% when they sell companies they have owned for at least two years. The break is meant to motivate owners to invest...
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