The Institute of Directors (IoD) is calling for a new flat rate of 15% for capital gains on all assets, similar to the US but lower than France’s 16%.
‘We know in areas of encouraging enterprise the US has always been very good,’ Miles Templeman, IoD director general of the, told Telegraph.co.uk. ‘We should not be looking to Europe as the benchmark on enterprise but to the US.’
IoD estimates reducing the rate from 18% to 15% would cost the Treasury £900m, making the reform revenue neutral.
Treasury officials are at present considering proposed amendments to the reform from IoD and other employer organisations to make it more acceptable to the business community.
Further reading:
IoD urges lowering of CGT modifications
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