25-01-2008
Government faces criticism after CGT announcement
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The UK government is facing fresh criticism, following the announcement of a number of new capital gains tax (CGT) concessions.
Following the unveiling of measures by chancellor Alistair Darling, criticism has centred on the "message" sent out by the new measures and the potentially negative impact on those with the ability to create wealth, reports the Financial Times.
"The bottom line is that the reaction of the UK government, in the face of an economic slowdown, has been to slap on a major tax hike of £700 million," said Richard Lambert, the director general of the Confederation of British Industry, an organisation that operates on a not-for-profit basis.
"This will have a damaging effect on job creation, investment and savings at exactly the wrong time in the economic cycle."
Under the new regime, from April 6th CGT will operate at a single rate of 18 per cent, without taper relief.
However, a new system of entrepreneurs' relief is to be introduced - among other measures - which, it is believed, will be beneficial to approximately 80,000 investors and business owners.
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