When an owner of a company sells their company, historically that has attracted a much lower rate of Capital Gain Tax.

The gain a seller of a company makes above asset values, is not a tax deductible expense by the buyer and is called goodwill. This practice is unusual in taxation usually someone's cost is someone's income, in this case as it is not, however it benefits HMRC.

Currently a lifetime limit of £1 million (was originally £10 million in 2011) and from April 26 reduced effective CGT rate to 16%, which from 2008 to 2024 was 10%. Note any Gain is on assets that have already been taxed.

Ignite British Ambition. Make Britain the best place on earth to build and grow a business. By increasing the entrepreneur's lifetime limit to £5 million and cutting their Capital Gains Tax rate on success to 12.5%, which would be a 50% reduction on the full rate. Sending a clear message: we back our innovators from start-up to success story.

While predicting the exact revenue is difficult, we expect this change to increase the overall tax take. A fairer, simpler rate reduces the incentive for individuals to engage in costly and complex tax avoidance or simply evasion. The primary objective, however, is not the tax receipt itself, but fostering a dynamic culture of growth that properly rewards success.