Baroness Noakes insists CGT rise unwanted

Baroness Noakes

Baroness Noakes, the former KPMG partner and until recently a Tory Treasury
spokesman in the House of Lords, has told the chancellor that rises in capital
gains tax have “no popular support”.

According to a report in the
Lady Noakes has told George Osborne that the measures,
expected to lift the CGT rate from 18% to something closer to 40%, have no
support in the party or in the business community.

The plan was to levy an increase on non-business assets but the details are
as yet unclear and expected to be revealed in the emergency Budget later this
month. Prime Minister David Cameron has already hinted that the original idea
may be watered down, as had Deputy Prime Minister Nick Clegg.

A rise in CGT was a core principle in the Liberal Democrat election manifesto
and was adopted by the Tories when the two parties formed the coalition

Reform of CGT was long expected because the differential between the CGT and
income rates was encouraging many people to convert income into capital in a bid
to avoid the higher rates.

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