TaxPersonal Tax272,000 face share scheme CGT hit

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

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.’

Further reading:

Splits
in business ranks over CGT proposals

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