Feeds

UK biz groups bemoan CGT reform

Oh Darling, how could you?

Application security programs and practises

British businesses have joined forces in an attempt to convince the government to rethink its decision to reform capital gains tax (CGT).

In his first Pre-Budget Report (PBR) last week, chancellor Alistair Darling said he would dump taper relief on CGT replacing it with a single 18 per cent tax rate from April next year.

But four main business groups, representing thousands of firms across the UK, have slammed the government's plans claiming that such an overhaul to the CGT system will have a huge impact on the economy.

The Federation of Small Businesses (FSB), the CBI, the British Chambers of Commerce and the Institute of Directors have, in what has been considered by many as a rare move, buddied up to cry foul over Darling's CGT strategy.

In an open letter sent to the new chancellor today, the group puts pressure on the government to suspend the axing of CGT taper relief arguing that the "announcement came as a bolt out of the blue".

The group also collectively agreed that small to medium-sized businesses (SMBs) would be particularly squeezed by the change.

They wrote: "Owners of small enterprises, who have toiled over years to build up an asset, are now faced with selling up before April or facing a substantial dent to their investment.

"The 1.7 million ordinary employees who are in company share schemes could also face an 80 per cent increase in their tax bill and a serious disincentive to taking up and retaining share options in the future."

The FSB described it as a "hammer blow" to SMBs and said it will continue to push to get the decision reversed.

Nearly 6,500 people have already signed an online petition urging Darling to do a U-turn over his CGT reforms.

Darling said during his PBR speech that the new flat rate of 18 per cent for CGT was­ "one of the most competitive single rates of any major economy".

There's more on CGT here, and the full letter sent to Darling can be viewed here.

Will the business lobby's pleas be listened to in Whitehall? No, if the experience of the PC industry is anything to go by. Last year's pulling of the Home Computing Initiative in the budget prompted warnings of dire consequences by vendors and dealers. The tax-break was pulled anyway, and a raft of small British tech companies promptly became history.®

Mobile application security vulnerability report

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
Price cuts, new features coming for Office 365 small biz customers
New plans for companies with up to 300 staff to launch in fall
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.