TaxCorporate TaxCapital gains tax plans sour for Alan Sugar

Capital gains tax plans sour for Alan Sugar

Lord Sugar says entrepreneurs relief does not provide enough incentive

Lord Sugar has criticised the capital gains tax regime, adding his voice to
the chorus of dissent from businesses and MPs.

The tycoon called a debate in the House of Lords yesterday, warning that the
current tax breaks for entrepreneurs were inadequate,
the
Daily Telegraph
reported.

Entrepreneurs’ relief provides business owners with a one-off 10% rate for
the first £2m of capital gains. They are then taxed at 18% for any further
gains.

“In this day and age [£2m] falls short of the aspirations of real growth
companies,” Lord Sugar said.

“Payout [on exit] is the ultimate goal for such entrepreneurs and their
employees who have been incentivised with approved share option schemes.”

Lord Sugar also said the proposed hike for non-business assets would damage
the UK economy as business owners became disillusioned.

“Raising capital gains tax rates will… depress their desire to work hard
and the most devastated will be those business or asset owners who have worked
hard and are reaching an age where they are wishing to consider a sale,” Lord
Sugar said.

Further reading:

Businesses
fear CGT confusion, warns BCC

17,000
sign up to CGT petition

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