TaxPersonal TaxTories pledge to cut CGT rate

Tories pledge to cut CGT rate

Shadow chancellor Michael Portillo has told City leaders that a Conservative government would slash the rate of capital gains tax and simplify the tax, system to boost investment.

Portillo pointed to similar government initiatives in the US and Ireland where reductions in the rate to around 20% of had sparked off venture capital investments, a Financial Times report said today.

In November, the government announced a reduction in the rate of CGT from 40p to 10p for venture capitalists and non-training ventures, following widespread complaints that the 40p rate has been crippling investment.

Portillo commended some of the government’s changes, but said a headline rate of 40% and an over-complex CGT regime would cause market distortions.

The Tory chancellor’s latest announcement followed a week of attempts to restore the Conservative Party’s tax cutting credentials, after it abandoned its traditional election promise to cut income tax rates across all income brackets.

Links

Guidance note released on capital gains tax taper relief

Pre-Budget statement: Brown widens low CGT rate

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