Scrapping entrepreneurs’ relief will destroy retirements, say small firms, as they urge Chancellor to stick to manifesto pledge

Press Releases 1 Mar 2020

FSB responds to reports that the Chancellor may scrap entrepreneurs' relief.

Responding to reports that the Chancellor may scrap, not reform, entrepreneurs’ relief at the upcoming Budget – in defiance of a Conservative manifesto pledge to “review and reform” the incentive – Federation of Small Businesses (FSB) National Chairman Mike Cherry said:

“Scrapping entrepreneurs’ relief would make a mockery of the idea that it’s ever sensible to build up a business rather than investing in property, land or securing a gold-plated pension. Everyday entrepreneurs throughout the country who are about to retire will be left permanently poorer by this change.

“Only around ten per cent of people who claim this relief are selling businesses worth more than £1 million. The vast majority of those who benefit from this incentive – 38,000 each year – are everyday entrepreneurs, those who see their business as their retirement plan, and who would lose an average of £15,000 each as a result of this change. This move would mark an incredibly damaging way of telling anyone thinking of investing in their business not to bother.  

“The Conservative Party made a clear commitment to reform – not scrap – this relief in its general election manifesto. They should keep to their word. Sensible reform would involve refocusing entrepreneurs’ relief so that it only applies to the first £1 million of business sales. Doing so would protect the vast majority of those who benefit from this incentive each year.”


Media contact

About FSB

As the UK’s largest business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed.

FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.