Capital gains tax:
The very essence of an entrepreneur is their ability to create valuable businesses several times in their careers and this should be reflected in the criteria set for entrepreneurs’ relief. They should be rewarded for their contribution to business growth with an extension to the relief for the first £5m worth of gains. We also believe businesses held for a relatively short period (say, no more than three years) should qualify and relief should be awarded to entrepreneurs who work on a part-time basis.
Companies who fail to fit the regimented size parameters of a “small” or “large” firm find themselves paying the marginal rate of tax at 29.75 per cent – more than the top rate. This is unfair and we would like to see the balance between the two rates merge to a single rate of 24.75 per cent.
We would like to see a firm commitment to phase out the 50 per cent rate of income tax once the economic recovery is underway. At best, it has done little good for the economy and at worst it has acted as a deterrent to wealth creation in the UK.
Business property relief must be preserved. We would like to see a relaxation and simplification of the criteria that needs to be satisfied in order to qualify for this relief. It is a valuable relief for families which pass the business down through the generations and something that must be retained and ideally extended. An increase of the relief from 50 per cent to 100 per cent on land and buildings would be welcomed.
Businesses must be given at least three months’ notice to give them time to get their systems in place before any rise in VAT. There is heavy administrative and cost burden that is carried with each rate change. We would like to see an amnesty from any penalties arising from genuine errors, especially if it is brought in overnight.
Do you agree with this wishlist? Which other measures would you like to see in the Emergency Budget? Post your comments below.
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