Entrepreneurs are considering selling their businesses before April to avoid
the hike in CGT, a survey has found.
The CBI curvey of business leaders reveals that 41% were considering the
Instead, the proposals are already holding back future business plans – 43%
having changed their plans to invest in new business and 36% now unwilling to
invest in existing business.
The survey revealed 40% of SMEs found the proposed CGT changes already had a
negative impact on their business. This response increased to 57% for business
leaders holding equity in their business for more than 10 years, who accounted
The three main elements of the proposed CGT changes – the abolition of taper
relief, the change in the marginal rate and the abolition of indexation relief –
were regarded as key issues, particularly for those with an equity stake. The
survey showed a sharp spike of concern about taper relief as 85% of those who
said CGT changes were ‘very negative’, cited taper relief as ‘highly important’.
John Cridland, CBI deputy director-general, said the government’s standing
with business had been ‘sorely undermined’. ‘Entrepreneurs are now less inclined
to do what they do best – taking risks, investing in ideas and driving the
economy forward,’ he said.
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