Industry warns corporation tax is too complex
Business organisations have warned ministers that plans to tax capital gains in the same way as income would be too complex and could drain their cash flows.
The Federation of Small business said the plans could ruin its members, while the British Chambers of Commerce expressed concerns that the reform could lead to a more complex system. The Confederation of British Industry stated its members are reluctant to give up capital allowances. ?There is a real concern about the taxing of unrealised gains,? it stated.The new corporation tax, published in a green paper in August, would abolish relief on assets such as plant and machinery through capital allowances. Instead relief will be calculated on depreciation and thus hit company cash flows.