Entrepreneurial relief (ER)
With the re-election of a Conservative government—and one without the backing of the Lib Dems—we expect to see the continuance of ER at its current level for at least the next five years. Margaret Hodge, the Labour chair of the parliamentary Public Accounts Committee, had made comments in regards to a change in ER, potentially scrapping it altogether, which of course will not now come to fruition.
The recession is over and fears of a double dip were dispelled in 2010. GDP exceeded its pre-recession peak by Q3 2013 so many companies which were suffering now have a solid three years of accounts. A large number of M&A deals are based on the previous three years EBITDA figures and so, with offer values increasing, the frequency of completed deals has risen accordingly.