Employer groups join forces over CGT
UK’s four main business groups have joined forces in an open letter to the chancellor, urging him to suspend proposals to abolish capital gains tax taper relief
The heads of the
British
Chambers of Commerce,
CBI,
Federation of Small
Businesses and
Institute
of Directors say the impact of chancellor Alistair Darling’s decision to
abolish capital gains tax taper relief ‘will be felt throughout the economy’ by
‘discouraging longer-term investment and risk-taking’.
‘Owners of small enterprises…are now faced with selling up before April or
facing a substantial dent to their investment,’ the letter said. ‘The 1.7
million ordinary employees who are in company share schemes could also face an
80% increase in their tax bill and a serious disincentive to taking up and
retaining share options in the future. Business angels and venture capital funds
say they too will be discouraged from taking risk and investing for the long
game.’
Their letter to Darling follows an open letter by Richard Lambert, CBI
director-general, last week, attacking the proposal for putting hundreds of
thousands of small businesses at risk.
The business groups plan to meet the chancellor to understand why he made his
surprise decision and work with him to resolve the issue.
Further reading:
CBI delivers stinging attack on Darling over CGT
Business counts cost as Darling hijacks Tory ideas