Entrepreneurs’ Relief – the Lifetime Limit is reduced from £10million to just £1million for disposals made on or after 11 March 2020. The reduced Lifetime Limit can also affect many disposals made prior to 11 March 2020, so many serial entrepreneurs will already be denied any further relief if they sold shares in exchange for other shares or securities. The anti-forestalling provisions in the Finance Bill published on 19 March 2020 do not include adequate transitional provisions and apply inconsistently and unfairly.
There are significant anti-forestalling measures to ensure that many contracts exchanged before Budget Day will still be caught – particularly between connected parties – unless they can be shown to have had a commercial basis and no tax-avoidance motive.
However, the Government appears to support Enterprise Management Incentive Schemes, to the extent that it may consider whether their scope should be enhanced so that more companies are encouraged to participate.
Further information on this change is here - https://www.gov.uk/government/publications/change-to-the-entrepreneurs-relief-lifetime-limit-for-capital-gains-tax/capital-gains-tax-entrepreneurs-relief-reduction-in-the-lifetime-limit--2#detailed-proposal
Capital Gains Tax Reliefs for SMEs and Entrepreneurs will be updated in line with Finance Act 2020 in the summer.