TaxCorporate TaxBrown claims Labour has cut CGT

Brown claims Labour has cut CGT

Prime Minister says rate has come down while Labour has been in power

Gordon Brown has claimed that his government has cut capital gains tax over
the 10 years it has been in power, as Tory leader David Cameron maintained the
pressure on the government over its CGT changes.

‘When we came to power it was 40%. Now, under the Chancellor’s proposals, it
is 18%,’ Brown said in answer to Cameron’s questions yesterday.

The government plans to scrap the 40% rate and have one single 18% rate,
without the network of reliefs and allowances that went with the 40% rate.

Cameron pressed Brown to give more certainty to business on what would happen
with the capital gains regime.

‘It is only three months before the start of the financial year. Businesses
throughout the country want to know the capital gains tax rate that they will
face in April. Will the Chancellor go ahead with his 80% increase in capital
gains tax rates, or are we set for another humiliating U-turn?,’ Cameron asked.

Gordon Brown said the announcements would come shortly.

‘The chancellor has agreed to consult on its implementation and will report
back to the House of Commons in due course. Why did the Conservatives have 18
years of not reducing the rate of capital gains tax?,’ he said.

Further Reading:

Hansard
transcript of the exchange

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