Stop Abolition of Entrepreneurs' Relief

Stop Abolition of Entrepreneurs' Relief

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Ian Thomson started this petition to HM Treasury and

Monday 27 January 2020

OPEN LETTER TO THE TREASURY AND HMRC


On Wednesday 6th November 2019, the media reported that a former head of HMRC called on the Government to scrap a “controversial” tax break designed to help entrepreneurs, which he said was costing the country £2bn a year in lost tax yet provided “no incentive for real entrepreneurship.” Sir Edward Troup called for the abolition of the Entrepreneurs’ Relief scheme, which fuels enterprise in the UK. Last week, his suggested intent was confirmed by Prime Minister Boris Johnson.

Reports that thousands of the country’s richest people are exploiting the policy to reduce tax bills are disingenuous. Without investment from high-net-worth individuals, start-ups and SMEs struggle for cash to launch, scale-up and succeed in building successful businesses in Britain.

Sir Edward, Treasury and Government officials must understand that the true beneficiaries of Entrepreneurs’ Relief are the innovators and risk-takers who deserve just reward for their bravery, tenacity and determination, which often come hand-in-glove with great personal sacrifice.

Withdrawing an incentive that encourages bold thinkers with cash to invest in those without will destroy Enterprise UK, leave entrepreneurs with brilliant ideas no way of realising new businesses. The outcome will make this country innovation-poor at a time when it needs to expand its thinking and influence.

Many of us have already sacrificed personal assets and pensions and built up debt to fund our businesses. Ultimately however, those of us with the courage to create innovation and enterprise cannot do so without investment. VCs, private equity entities and banks are all risk-averse; without the “Angels” that have an appetite to assist ambitious start-ups, these businesses will struggle to succeed and without access to private cash, cease to exist.

Individuals who turn brilliant ideas into new businesses serve the UK long into the future, generating employment, manufacturing, export and substantial tax revenues.

Much of the UK’s building and democratisation of wealth can be attributed to the Government’s Entrepreneurs’ Relief and should be encouraged, not scrapped.

We, the undersigned urge HM Treasury to research the impact of removing Entrepreneurs’ Relief before it acts in haste, only to repent at leisure.

Yours, the undersigned:

Giovanna Forte, Founder and CEO, Forte Medical Limited Giovanna@forte-medical.com
Amanda Thomson, Founder and CEO, Thomson & Scott, amanda@thomsonandscott.com
Emma Osborne, Founder, Citizen Kind, emma@citizenkind.com
Emma Sayle, Founder and CEO, The Sisterhood Group/Killing Kittens, emma@sistrapp.com
John Simpson, Chief Executive, Skyrocket Phytopharma (UK), taipan@neuropad.co.uk
Ian Thomson, Director, McAinsh Consulting, ian@mcainshconsulting.com

 

 

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