Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, when his Department last undertook a review of entrepreneurs' relief; and what the findings of that review were.

Entrepreneurs’ Relief (ER) was recently considered as part of the Patient Capital Review (PCR). The government’s full response to the PCR can be found here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/661398/Patient_Capital_Review_Consultation_response_web.pdf

In response to the review, the government is addressing the disincentive effect from entrepreneurs’ seeing their personal shareholding diluted below the minimum 5% as a result of commercial fundraising. The technical consultation ‘Allowing Entrepreneurs’ Relief on gains made before dilution’ is currently open: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/688492/entrepreneurs_relief_consultation_web.pdf

In addition to this, HMRC published quantitative research in December 2017 into the effectiveness of ER at motivating behaviour. The findings showed relatively low levels of awareness of the relief at the point of investment, but that of those who were aware around half were influenced by it in their decision to invest. The government will continue to review the findings of this research in consultation with stakeholders.

https://www.gov.uk/government/publications/capital-gains-tax-entrepreneurs-relief-behaviours-and-motivations

All tax policy is kept under review, and any changes are announced by the Chancellor as part of the usual Budget process.