CGT move to be unveiled

IveSeenTheLight

From the BBC News website http://news.bbc.co.uk/1/hi/business/7205811.stm

Capital gains move to be unveiled

The chancellor outlined the changes in his pre-Budget report

The government is due to unveil details of its proposed changes to Capital Gains Tax (CGT), amid reports of concessions after business criticism.
Business leaders had said they did not expect ministers to reverse plans to scrap CGT taper relief from 1 April 2008 and apply a new single 18% band.
But press reports say the rate will be halved to 9% on gains of up to £750,000 on the buying and selling of assets.
The plans have enraged small business owners who would be worst affected.
At recent talks with business leaders, ministers were quoted as saying the 10% rate would still go up to 18% this April.
Taper relief currently allows some higher rate taxpayers to pay as little as 10% CGT on profits from the sale of assets in any unlisted company or publicly-listed firm they work for, as long as they have held them for two years.
It can also reduce the CGT liability for some basic rate taxpayers to 5%.
'Deeply disappointed'
Miles Templeman, director general of the Institute of Directors said: "It is clear that the government is not going to change the core of its proposals to modify capital gains tax. We are going to see a single rate, with no taper relief.
"We are deeply disappointed but not surprised. The government's stance implies that there will still be a substantial tax increase which is bound to damage business."
The proposed changes to capital gains tax were announced by Chancellor Alistair Darling in his pre-Budget report last October. The changes would mean private equity bosses, who have made fortunes from buying and selling companies, will no longer be able to pay just 10% on their profits. But critics said it also meant budding entrepreneurs could be put off, while existing small business owners described the changes as "potentially ruinous".

mystic_trev

This is old news from the pre-budget report and great news for many BTLers. I'm selling one of mine and will save a small fortune thanks to the new CGT rules.Better to lock in some profits now, than to watch them dwindle in the next few years!

IveSeenTheLight

I knew the old news but there are reports that instead of being 18% it will be halved to 9% on gains up to 750,000