Could Your Business be Affected by Capital Gains Tax Plans?
Although it was
announced as a measure of taxation against
large businesses, the chancellor’s proposed
changes to Capital Gains Tax (CGT) could
have a damaging effect on many small
businesses and employees.
The planned changes
will remove the taper relief on CGT, and
will increase the tax you have to pay when
you sell your business; will discourage
longer-term investment, will increase the
taxation for employees on share ownership
schemes, as well as threatening investment
in small businesses from venture capitalists
and ‘business angels’.
In fact, the move is
seen as so damaging to business that the
four main business groups in the UK have
come together to write an open letter to the
Chancellor urging him to abolish the
measure.
The British Chambers of
Commerce (BCC), the Confederation of British
Industry (CBI), the Federation of Small
Businesses (FSB), and the Institute of
Directors (IOD) have all signed the letter
which says the new rules will cause
significant damage to many small businesses,
and will damage the economy by discouraging
investment and business risk-taking.
On top of the
forthcoming increases in small business
corporation tax, it appears that small
businesses are currently getting a raw deal
from the Chancellor.
For more information on taxation issues
visit our Accounting portal.
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