Fellow trade bodies have hit out against the calls from the Institute of
Directors that chancellor Gordon Brown should scrap billions in tax reliefs in
return for a cut in the corporation tax.
According to the The Daily Telegraph, The Association of British Insurers,
the British Venture Capital Association and the UK Film Council all said they
were not prepared to ditch their specific tax reliefs for what the IoD claimed
was the ‘greater good’.
In its budget submission, the IoD proposed that the chancellor end 10
business tax reliefs, including £1.1bn given to policyholders of life assurance
products, £495m in tax breaks for venture capital trusts and enterprise
investment schemes and £560m received by the film industry.
The IoD said this move would cover a 2% reduction in the corporation tax rate
which is currently at 30%.
Fellow industry groups have all lobbied intensively for the reliefs, however,
and the IoD proposal did not go down well.
‘A general reduction in the tax burden has got to be a good thing, but not at
the expense of the schemes the chancellor is personally sponsoring,’ a British
Venture Capital Association spokesman said.
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