Entrepreneurs’ Relief (ER) is a genuine tax break for business owners and should not be scrapped, according to Robert Pullen, a tax manager at London Chartered Accountants Blick Rothenberg LLP.

Following a report by the National Audit Office, Margaret Hodge, chair of the Public Accounts Committee, has called for much closer scrutiny of ER to prevent perceived “fraud and misuse”. The comments are based on an increase in the “tax cost” of ER – from £500 million in 2008/09 to an estimated £2.9 billion in 2013/14.

Mr Pullen said: “If ER...