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CGT U-turn confirmed

Gains in excess of £1m will be taxed at 18 per cent. Taper relief will still be abolished from April.

Chancellor of the Exchequer Alistair Darling says: “Entrepreneurs will keep 90 percent of the first £1m of gains they make.”

He stresses the introduction of the CGT entrepreneurs’ relief will “complement the new regime”, noting that the measures will benefit business owners who want to sell but also business angels and other investors.

“I’m determined that we do as much as possible to encourage entrepreneurship in this country,” Darling says, adding that the government will seek to do more for entrepreneurs in future budgets.

Darling caused a storm in the business community last October when he announced in the pre-budget report that the CGT taper relief will be replaced by one rate of 18 per cent.

Entrepreneurs claimed the move was a slap in the face, and warned that it may encourage many business owners to relocate to other countries.

Related article – Entrepreneurs lambast latest CGT plansRelated article – CGT: are entrepreneurs still losers? Related article – Is Darling’s U-turn enough for SMEs?Related article – Entrepreneur backs new CGT plans Related article – Darling unlikely to scrap CGT plansRelated article – Chris Lewis’s letter to PMRelated article – Pre-budget blow to entrepreneurs Related article – Entrepreneurs in new climate of fearRelated article – Slap in the face for UK entrepreneursRelated article – Waging war on CGTRelated article – "Labour’s lost my vote"Related article – Charles Clarke on capital gains tax


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