Readers offer CGT support

Readers offer CGT support

Readers support the chancellor over his changes to CGT rules

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%
tax hike.

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
business groups.

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.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource