TaxCorporate TaxDo not tax unrealised gains, say IoD

Do not tax unrealised gains, say IoD

The Institute of Directors yesterday called on the government to drop plans to tax companies on unrealised gains.

Link: Treasury tight-lipped over PBR

Government proposals state that it should be able to claim tax before any cash is generated – such as where a property has increased in value but has not been sold.

‘Many profitable companies fail because of cashflow problems, so changes to the tax system which force companies to pay more tax, earlier, might force some companies out of business altogether,’ said Ruth Lea, head of the policy unit at the IoD.

The proposed changes come with the Revenues Consultation of Reform of Corporation Tax, which was published in August. While the changes may well achieve the Revenues goal of simplifying the tax system, it would do at an enormous cost to business.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2w Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

2w Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

2m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

3m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

3m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

6m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

6m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

7m Alia Shoaib, Reporter