ENTREPRENEURS in the North East are the most reluctant in the country to sell their business despite the recent doubling of Entrepreneurs’ Relief to £10m.

While one in ten entrepreneurs in the UK thought that the increase would make them consider selling their business the North East figure is around one in 50, according to the quartlery RSM Tenon Business Barometer.

The Chancellor, George Osborne, announced in March that the Government would double Entrepreneurs’ Relief in order to rejuvenate the M&A market.

The relief limits capital gains tax to ten per cent on the sale of business assets, making it an attractive tax benefit to those considering selling their business.

By analysing official figures, RSM Tenon in Leeds has calculated that as a result of this initiative and assuming a typical deal value of between £5m and £10m, the Government is expecting around 250 transactions to take place in 2014.

RSM’s latest survey appears to show early signs that this may be the case, and that this was a positive move by Government to get the M&A sector moving again.

But the survey also revealed that 14% of entrepreneurs in the North – the second highest in the UK next to Scotland – were unaware of what Entrepreneurs’ Relief was, and the benefits it might be able to offer 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 two per cent of entrepreneurs in the North would consider selling their business as a result.”