The profession has offered surprising support for the chancellor over the
radical plans to reform capital gains tax (CGT).
The plans see a single rate come in and all previous reliefs dropped, moves
that have caused an outcry among entrepreneurs, who say they are facing an 80%
But just less than half (43%) of those polled on accountancyage.com agreed
chancellor Alistair Darling should press ahead with the reforms, agreeing with
the statement: ‘Tax simplicity is important and there will always be losers as a
result of changes.’
Though most said the chancellor should back down, the significant minority in
favour of pressing ahead will be more surprising given the noisy criticism from
Government ministers defended the changes again this week. Business secretary
John Hutton, while declining to say what representations about the tax he has
passed on to the Treasury from business, conceded there were strong arguments
being studied by the chancellor.
But he insisted the regime would keep the UK competitive: ‘Instead of keeping
£90 of every gain, the entrepreneur will keep £82. That is an immensely
attractive tax regime.’
A coalition of groups, including the Federation of Small Businesses, the
Institute of Directors, the Confederation of British Industry and the British
Chambers of Commerce, have all attacked the moves.
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