Tories pledge to cut CGT rate

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.


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