Feeds

UK biz groups bemoan CGT reform

Oh Darling, how could you?

Security for virtualized datacentres

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.®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.