UK Chancellor of the Exchequer John Healey announced a lower rate of capital gains tax for founders of start-ups, while increasing the amount paid by owners of established businesses who cash out.

By Lucy White Healey said he would modify so-called Business Asset Disposal Relief, which allowed owners to pay the lower rate of capital gains tax of 18% instead of 24% when selling their company, so that it will be limited to gains up to a total of £500,000 ($664,950). Previously, the limit was £1 million.

But Healey also announced a new Founder’s Relief which will give entrepreneurs a lower 10% rate on gains of up to £10 million “for the founders of our most successful firms.”The government said it will start a consultation on exactly who will be eligible.

“I know that starting a company means taking risk,” Healey said, presenting his first budget. “Leaving a secure job to build something with no guarantee that it will work. And I believe that when business founders take that risk, build an exceptional company and create wealth for Britain, we should recognize that success and keep those people here to invest again.”Healey said he would also triple the trading allowance, or the tax-free amount which can be earned from a new venture, from £1,000 to £3,000, and would launch a Young Entrepreneurs Allowance to cover a year of living costs for young founders.

“The Chancellor has delivered something of a mixed message for entrepreneurs in today’s Budget,” said Michael Carter, partner and head of incentives at law firm Osborne Clarke.

The cuts to disposal relief could be more than outweighed by the new Founders relief, he said. “Offering a 10% tax rate on up to £10 million of lifetime gains, it appears to restore a substantial incentive for entrepreneurs to build and sell businesses in the UK.”