Treasury & Custom’s draft legislation on its capital gains tax is set to
cause fury among business owners, after the government declined to make any
allowance for loan notes or deferred gains.
Many entrepreneurs are understood to have sold their business in exchange for
loan notes rather than cash.
Advisers had hoped that such loan notes or deferred gains would mean that
business owners could opt for the current CGT regime, when the sale was made,
rather than the forthcoming CGT regime, with an 80% higher rate in many
The draft legislation makes clear that the notes will be taxed under the
‘There should be an election,’ said Chas Roy-Chowdhury, head of taxation at
ACCA, referring to the possibility of being able to choose which tax regime to
Accountants welcomed some decisions in the draft legislation, which they said
would benefit business owners sitting on gains of less than £1m, which could
qualify for the 10% relief rate,
Daily Telegraph reported.
Lisa Macpherson, PKF
national tax director at accountants, warned the details of the relief had come
too late for many business owners.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states