Northern entrepreneurs reluctant to sell up

THE recent doubling of Entrepreneurs’ Relief to £10million is likely to kick-start the burgeoning mergers and acquisitions (M&A) market in the UK, according to a new survey, but northern entrepreneurs are most reluctant to sell up.

The RSM Tenon Business Barometer, a quarterly survey of senior management in SMEs, found that nearly one in ten entrepreneurs in the UK thought that the increase in Entrepreneurs’ Relief to £10m from April 2011 would make them consider selling their business, but only 2% – the lowest in the UK – were based in the north.

Entrepreneurs’ Relief limits Capital Gains Tax to ten per cent on the sale of business assets.

The survey also showed that awareness of the doubling of relief was lower in the north of England than any area outside Scotland, with 14% unaware of how it would benefit them.

Neil Sevitt, RSM Tenon Regional Director for the north, said: “The last Budget introduced some good incentives for entrepreneurs in the bid to encourage growth in investment into business.

“These figures seem to suggest that this has had the desired effect and business disposals in the UK are now back on the agenda.

“However, it is interesting that only 2% of entrepreneurs in the north would consider selling their business as a result. We know that the last couple of years have been difficult for entrepreneurs, and so it could be the case that there is still nervousness in the market.”