272,000 face share scheme CGT hit

ifs Proshare puts figure on number of workers with save as you earn schemes who will be hit because of Chancellor's CGT clampdown

Written by David Jetuah

Accountancy Age, 09 Nov 2007

Nearly 300,000 UK workers will have to shoulder the burden of Alistair Darling's CGT tax hike a pressure group has warned.

ifs Proshare said that 272,000 of the 1.7m UK employees making monthly savings through save as you earn schemes are likely to be worse off after the Chancellor’s decision to change CGT.

The CGT tax threshold for workers participating in the scheme is £9,200 but from next April, workers will owe 18p in the pound to the taxman instead of 10p on any cash deposited above this amount.

The not-for-profit organisation which supports employee share ownership said it had met with Treasury officials to discuss the negative impact the CGT changes and hammer out possible solutions.

Previously the Chancellor has said that the changes would not be felt so significant for the majority of blue-collar staff participating in the schemes:' I am not sure how many employees who have shares will be in the happy position of having an annual gain in excess of £9,200 every year.'