So Alistair Darling will announce his new proposals on Capital Gains Tax (CGT). Will entrepreneurs be pleased with the outcome?
According to the FT, it will be a "humiliating climbdown." The FT says that the CGT changes will be "modelled closely on a proposal by the Federation of Small Businesses" for an “entrepreneur’s relief” that would halve the 18 per cent rate on gains of up to £750,000.
The Telegraph reckons that entrepreneurs will be disappointed. It quotes the IoD’s Miles Templeman as saying: "they are not changing the principle and the overall direction of the pre-Budget report proposal. They are sticking to it and taper relief will go."
The Times reckons that entrepreneurs have been granted a "reprieve" by Darling on CGT. It, too, reckons that CGT for entrepreneurs will be calculated on a nine per cent rate on the first £750,000 of gains. "It means that a company owner making a gain on a sale of £750,000 will now pay tax of £67,500 rather than £135,000 as proposed last October.".
We’ll post a few more thoughts on today’s changes to CGT.
As an entrepreneur, are you satisfied?
Should CGT still contain taper relief?
This story is not going to go away. So let us know what you think.
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