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Business angels boosted by spur to investment in SMEs

Entrepreneurs - Business Angels - SantanderCB

Investing in small and medium-sized enterprises has become far more attractive for business angels thanks to changes to entrepreneurs' relief announced in yesterday's Budget. Business angels and other investors will no longer have to hold a minimum of 5% of a business to qualify for entrepreneurs' relief, nor will they have to be an employee or director of the company. Under the new rules, entrepreneurs' relief of 10% will be available on gains from newly issued shares from unlisted companies (but including those on AIM) on or after March 17 2016 and held for at least three years from April 6. The total amount of lifetime gains eligible for entrepreneurs' relief remains capped at £10m. Business angel groups welcomed the Budget changes, hailing them as a government endorsement for private investors. 'They confirm the commitment of the government towards the entrepreneurial community,' said Sally Goodsell, chairwoman of the Become an Angel campaign, which will be launched next week. 'It also provides further proof that entrepreneurial businesses in this country are the key to economic growth. It's good news the government is seeing that as key to its economic strategy.'

 

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