The government is apparently considering giving business owners the right to claim the current rate of capital gains tax even if they do not sell their businesses until January 2009.
An option, under ‘active consideration’ by HM Revenue & Customs officials, according to The Daily Telegraph, would enable Alistair Darling to present his tax raising plans as only hitting future rises in business values.
Bill Dodwell, Deloitte head of tax policy, told The Daily Telegraph the ability to bank the current rate and historic inflation indexation would be attractive to some business owners. ‘We think this would be a sensible option for the Treasury to put forward,’ he said.
John Whiting, Price Waterhouse Coopers tax partner, said his firm had suggested combining the elected sale with a form of retirement relief, giving entrepreneurs a tax free gains allowance.
Further reading:
Business anger mounts as chancellor delays
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