Brexit & EconomyPoliticsBrown, Darling cave in over CGT proposal

Brown, Darling cave in over CGT proposal

Brown and Darling are said to be close to bowing to business pressure to rethink proposed CGT changes, considering a ?100,000 tax relief scheme

Prime minister Gordon Brown and chancellor Alistair Darling are
reportedly
about to bow to fierce opposition from employer groups against proposed changes
of the capital gains tax (CGT) with an offer to revive retirement tax relief for
small business owners, possibly for amounts up to ?100,000.

The turnaround comes one day after the chancellor met with the heads of yet
another employer group,
EEF,
representing engineering manufacturers, who argued the proposed changes to the
CGT would be damaging for enterprises by rewarding investment in non-business
assets and sent ‘a negative signal at a time when the investment climate,
especially for small firms, is set to become more difficult’.

Business owners, who are about to retire and who would be particularly hard
hit by the proposed CGT changes, are likely to receive a tax exemption, possibly
on the first £100,000 they make, from the sale of their business.

The Treasury is said to still be working out the level, but government
sources have told
The
Daily Telegraph
the threshold would run into ‘tens of thousands’ and could
be close to a £100,000 limit. Under the old retirement relief fund, which was
phased out when new CGT levels were introduced by Labour in 1998, the first
£250,000 of a capital gain was tax free, but anything after that was taxed at
40%.

Further reading:

E&Y pans Darling’s CGT explanation

Darling seen to soften stance on CGT changes

Related Articles

Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

Brexit Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

1m Alia Shoaib, Reporter
HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

Big Four HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

1m Alia Shoaib, Reporter
Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

Budget Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

2m Emma Smith, Managing Editor
Spring Statement live feed

Budget Spring Statement live feed

2m Emma Smith, Managing Editor
Spring Statement 2018: 5 things to look out for

Brexit & Economy Spring Statement 2018: 5 things to look out for

2m Alia Shoaib, Reporter
Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

Politics Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

4m Emma Smith, Managing Editor
David Davis, Secretary of State for Exiting the European Union

Brexit & Economy David Davis, Secretary of State for Exiting the European Union

4m Alia Shoaib, Reporter
Philip Hammond, Chancellor of the Exchequer

Brexit & Economy Philip Hammond, Chancellor of the Exchequer

4m Alia Shoaib, Reporter