PracticeConsultingFinance Bill 2000: Government signals U-turn over capital gains tax

Finance Bill 2000: Government signals U-turn over capital gains tax

The government is considering a U-turn over capital gains tax rules disallowing the investments of employees with shares in some major trading groups from business asset tapering relief, write our parliamentary staff. Economic secretary, Melanie Johnson, promised to consider the position of employees in groups like GKN who would otherwise fall foul of provisions making their company shares liable to less generous rules than those for private holdings. This is because their employers do not qualify as ‘trading companies’ under the rules. But she warned MPs she could not give an undertaking to act before the Bill becomes law later this summer. Johnson was replying to a Tory amendment to qualify the staff of large established groups that may be less than 51% owned whose position shifts between being wholly owned and 40% owned. The move was backed by Liberal Democrats Andrew Stunnell, who complained the rules would disqualify the employees of GKN-owned Westland Helicopters which had become involved in European defence groupings in pursuit of other government policy encouraging consolidation of defence-related industries. He said: ‘It would appear perverse to the company and its employees if following that policy by entering into joint ventures and partnerships and taking a leading role in consolidating put the employees at a disadvantage.’ Shadow chief secretary and accountant MP David Heathcoat-Amory said the point about Westland had become extremely urgent because GKN was negotiating a 50 percent partnership with Augusta owners Finmeccania which would add a further twist to complications disqualifying GKN as a trading company. More Finance Bill stories www.accountancyage.com/tax www.gkn-whl.co.uk.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer