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CGT: more complexity, not less

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It’s fascinating polling people who deal with entrepreneurs about the proposed changes to CGT announced this morning.

Thanks to Adam Strachan and Stewart McGregor at Merrill Lynch Global Wealth Management Group for their insights and these links to HMRC’s website:

Capital Gains Tax: Draft legislation (PDF 124K)

Capital Gains Tax: Entrepeneurs’ Relief (PDF 96K)

Big question: Does this move in any way actually reduce CGT for entrepreneurs?

There are lifetime limits and variable rates – all that Darling has done is create another dog’s breakfast of ongoing reporting burdens, which must surely result in yet another impractical solution.

So far, the feeling seems to be that this is not much of a concession and it adds layers of complexity. And what was the chancellor trying to avoid in his first CGT announcement? Er, complexity.

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