Peter Daniel and Dominic Cole provide a keen insight into the Office for Tax Simplification's proposal that the reliefs available to owner-managed business be simplified.

I found one point particularly interesting. The authors highlight that there is an uneven playing field between 10% Entrepreneur's Relief for those who establish their own business (and only then up to a lifetime maximum of £10,000,000), compared to tax-free gains through SEIS/EIS for investors (with no lifetime cap). This surely only works to discourage individuals from setting up in business themselves.

Hurdles such as these must surely prejudice businesses towards outside investment compared to internal growth driven by owners. Hopefully if the OTS's proposals are taken on board by HMRC they will review the entire landscape in a holistic manner.