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About In House Tax

This weblog is a news and views site for tax professionals within the UK and international in-house tax community.  You will find information about appointments and people moves in and around the in-house tax market, issues affecting the in-house tax professional, opinions on the state of the tax job market, updates on tax technology, and other general thoughts of the day.

Hope you find it useful.

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Location: St Albans, United Kingdom

This site has been developed by Simon Godley, who also runs the niche tax recruitment company Talentpool Selection . Simon spends a lot of his time placing tax specialists into FTSE companies, large in-bound groups and some professional services organisations. He also recruits and is well networked around the UK tax technology and VAT markets.

Tax News

Government caving in over CGT proposals

Thursday, 1 November 2007

Source: Accountancy Age

Prime minister Gordon Brown and chancellor Alistair Darling are reportedly about to bow to fierce opposition from employer groups against proposed changes of the capital gains tax (CGT) with an offer to revive retirement tax relief for small business owners, possibly for amounts up to ₤100,000.

The turnaround comes one day after the chancellor met with the heads of yet another employer group, EEF, representing engineering manufacturers, who argued the proposed changes to the CGT would be damaging for enterprises by rewarding investment in non-business assets and sent ‘a negative signal at a time when the investment climate, especially for small firms, is set to become more difficult’.

Business owners, who are about to retire and who would be particularly hard hit by the proposed CGT changes, are likely to receive a tax exemption, possibly on the first £100,000 they make, from the sale of their business.

The Treasury is said to still be working out the level, but government sources have told The Daily Telegraph the threshold would run into ‘tens of thousands’ and could be close to a £100,000 limit. Under the old retirement relief fund, which was phased out when new CGT levels were introduced by Labour in 1998, the first £250,000 of a capital gain was tax free, but anything after that was taxed at 40%.

SG comment: I am sensing this whole thing has been such a bad start for Darling as Chancellor, with such a major revolt from UK business. I am wondering how much opinion he actually surveyed from small/medium sized business before these proposals, or perhaps he can't do that, which would be strange? I am also very comforted that UK business can have a major influence on government decisions, which is a relief.

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posted by Simon Godley


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