Finance
Budget had some relief for start-ups
Among the less spectacular announcements made by the Chancellor in his first Budget were the changes made to Entrepreneur’s Relief (ER). There had been calls for this to be abolished, but
instead the Chancellor – Rishi Sunak – decided to reduce the level of support available. Previously, entrepreneurs could pay a reduced level
of capital gains tax when selling businesses (ten per cent instead of 20 per cent) and the limit set for this was set at £10m. The Budget saw this figure reduced to £1m, which
is what it was originally set at by Gordon Brown when he introduced ER in 2008. Mr Sunak said he did not want to discourage
genuine entrepreneurs from taking advantage of the relief, a move broadly welcomed by financial experts in the Midlands. Linda Marston-Weston, EY’s head of tax in the
Midlands, said: “The Chancellor in his speech cited criticisms of Entrepreneur’s Relief (ER), noting concerns that ER was only encouraging one in ten entrepreneurs to start up. “However, the original aim of the relief was actually
to encourage successful entrepreneurs to stay in the UK and pay tax on their success, and then to reinvest and continue to contribute to the UK’s growth.
Linda Marston-Weston: Changes to Entrepreneur’s Relief (ER) will not reinforce serial entrepreneurship
“It appears that in light of the criticisms, the
Chancellor chose to return the reliefs limit back to £1m, the limit when it was introduced in 2008. “This will be a help to many Midlands entrepreneurs
but, in today’s environment, this may not be effective in seeking to retain the more successful serial entrepreneurs. “Those arguing for the limit to be made per
investment, rather than per life, and hence to reinforce serial entrepreneurship, will be disappointed. “The Chancellor will be hoping that the removal of
this allowance for those ‘serial entrepreneurs’ will not encourage them to leave the UK thereby paying no tax, hence losing the 10 per cent they would otherwise have paid, and costing the Exchequer rather than filling the coffers.”
Sector Focus
HSBC names Verma as corporate head
HSBC has appointed Suzy Verma as its area director of corporate banking in Birmingham, Warwickshire and Coventry. Ms Verma will head a 30-strong
team, who will target businesses with a turnover of between £10million to £350 million. Ms Verma joined HSBC in 2015
after an eight year stint at Santander. At Santander, she was one of the founding members of the bank’s education, health and charities team, and also set up a new international team in Brazil supporting FTSE 250 companies. Also joining Ms Verma’s team are
another ex-Santander staffer, Bill Dwight, who will be relationship director, and new deputy area director Tom Clamp, who was previously at Smith and Williamson. Frances Howell, HSBC’s head of
corporate banking in the Midlands, said: “Suzy has an excellent track record within HSBC UK and I look forward to the role the team can play in supporting businesses across the Midlands access HSBC’s £2 billion lending fund, which supports small and medium-sized enterprises realise their ambitions for growth.”
April 2020 CHAMBERLINK 73
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