Capital Gains Tax changes - a special report

by AccountancyAge.com

09 Jan 2008

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Changes to capital gains tax rules have remained in the news since the chancellor announced changes in the pre-Budget report back in late 2007.

What is the Treasury's position, and how does business feel about the proposals? Will there be compromise or is the honeymoon over between Labour and UK plc?

Read the stories below to see how the drama is unfolding:

2008

Brown claims Labour has cut CGT
Prime Minister says rate has come down while Labour has been in power

Darling defends CGT delays
Chancellor will take time on CGT concessions 'to get it right'

2007

Trade minister first to break ranks over CGT
Lord Jones, the trade minister, warns of ‘unintended consequences’ unless Darling offers CGT concessions

Government airs CGT concessions
The Government has floated the possibility of locking in the current 10% CGT on sale of firms until 2009

Business anger mounts as chancellor delays
Business frustration is mounting over chancellor’s delay in unveiling CGT changes

Darling postpones CGT reforms until New Year
Chancellor delays making final proposals on capital gains tax until 2008

Grant Thornton: concessions on CGT unlikely
Grant Thornton says UK govt will exceed its borrowing target by ₤6bn, making any concessions on CGT reform unlikely

Business 'more angry than ever before' over CGT
CBI chief warns the government that business is still fuming over CGT changes and red tape

Insider Business Club: capital gains tax changes
Our experts discuss the impact of the government’s unexpected CGT changes on the business community

IoD: Govt should copy USA’s 15% flat rate CGT
Alistair Darling should look to the US to set the new CGT rate, the Institute of Directors has suggested

CGT triggers 60% Miller sell-off plan
Treasury’s newly foreshadowed changes to the CGT are understood to be the trigger for a 60% sell off in Miller group

Lukewarm response to Darling’s CGT backflip
Darling’s possible backflip on proposed CGT changes by way of a ₤100,000 tax relief softener has received a lukewarm response

Brown, Darling cave in over CGT proposal
Brown and Darling are said to be close to bowing to business pressure to rethink proposed CGT changes, considering a ₤100,000 tax relief scheme

Business lobby fails to sway chancellor on CGT
British employee lobby is optimistic after meeting with chancellor Darling yesterday but failed to get a u-turn on capital gains tax policy

Darling says CGT changes will ease accountants' workload
Chancellor tells MPs in House of Commons that changes will simplify process and lead to less work for accountants

Darling agrees to capital gains tax talks
Chancellor to hold crunch meeting with envoys from the Institute of Directors, CBI, The British Chambers of Commerce and the Federation of Small Businesses

Darling rebuffs business call for CGT rethink
Chancellor is unmoved by mounting demand for rethink on CGT changes, insisting they are ‘the right thing to do’

Bipartisan stance against disliked CGT proposal
The Conservatives have allied themselves with some Labour MPs in an effort to reverse Alistair Darling’s decision to raise capital gains tax

PBR 07: Mazars warns of unintended consequences
The chancellor's CGT changes are just tax rises by another name, advisers from MacIntyre Hudson have said.

Employer groups join forces over CGT
UK’s four main business groups have joined forces in an open letter to the chancellor, urging him to suspend proposals to abolish capital gains tax taper relief

CBI delivers stinging attack on Darling over CGT
CBI calls CGT changes a 'blunt instrument' that could hit small business and the economy in general

Employee share schemes in CGT rate hike
1.7m face new flat rate set to be more than three times that currently paid by basic rate taxpayers

Advisers to suffer from CGT changes
Advisers will have to get their skates on to manage their clients' tax affairs in the wake of the impending changes to CGT

Darling considers private equity reforms
Chancellor mulls increasing capital gains tax rates and lengthening taper relief period

Private equity player admits taxes too low
A report in the Daily Telegraph quoted Taylor 'speaking independently' as saying tax rates could be higher without unduly harming investment

Raise revenue from CGT, says IoD
Business group suggests rethink of capital taxes

Avoidance schemes are rife among capital gains taxpayers
The use of capital gains tax avoidance schemes is surprisingly widespread, according to a new survey by HM Revenue & Customs

2006

Wealthy face capital gains crackdown
General anti-avoidance rule on the use of bogus capital losses to reduce capital gains tax bills is used to hit wealthy individuals as well as companies

2005

Shell finally resolves CGT saga
Company agrees to give loan notes to small investors to avoid capital gains liaibility that arose through its restructuring

2004

CGT rise predicted in PBR 2004
Businesses could face an increase in the capital gains tax rate when the chancellor reveals his pre-Budget report next week.

2002

Changes to capital gains tax planned
The government has unveiled a consultation document aimed at introducing substantial reforms to corporate tax legislation in three areas, including the tax treatment of capital gains.

2001

PBR 2001: chancellor cuts CGT taper relief
As expected the chancellor has announced that capital gains tax taper relief will be reduced to 20% after one year on the disposal of business assets, cut further to 10% after two years.

Scrap CGT on old assets, says IoD
The Institute of Directors has called on the government to scrap all taxation calculations on assets, which a company has owned for five years or more.

Proposals on CGT fail to impress tax experts
Inland Revenue officials are expected to come under fire at a special meeting with tax experts on Monday following the publication of capital gains tax proposals.

2000

Guidance note released on capital gains tax taper relief
The Inland Revenue this week provided some additional information on taper relief for capital gains tax.

Government urged to freeze capital gains tax
Chancellor Gordon Brown is being urged to freeze Capital Gains Tax to allow successive annual changes to settle down.

Lowest-ever CGT rates to boost hi-tech companies
Small FTSE-350 companies may drop to AIM after Budget reform.

1999

Taxation - Capital gains clampdown
The Inland Revenue's special compliance unit has ordered local tax offices to clamp down on several capital gains tax relief schemes

1998

CGT proposal backlash
CIoT and English ICA attack government over its corporate tax consultation.

Budget 98 - Capital gains changes look long term
New capital gains tax rules are simpler and will reduce avoidance, but according to tax experts not all entrepreneurs will benefit.

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