Contentious proposals for a single-rate Capital Gains Tax (CGT) are again dominating the headlines, following comment by Alistair Darling.
The proposed changes to CGT have caused unrest among business owners and investors as those looking to sell their business assets are now facing an 80% increase in taxes.
Speaking today, the chancellor acknowledged that proposals to introduce a single rate of CGT had been ‘controversial,’ yet emphasised that he was listening to public demand, intimating perhaps that concessions may be introduced.
“Many have long called for a simplified tax system and have long complained about the current system’s complexity,” said Darling.
“We recognise that one person’s tax exemption is another’s complexity. We are working to listen to what you have to say.”
Darling said he would report to parliament on the matter shortly, and expects the proposal to be finalised over the next three weeks.
However, the possibility of a tax concession has been called into question by accountancy and business advisory firm Grant Thornton, which claimed any concessions are ‘doubtful’ considering an excess of £6bn in public overspending this year.
Maurice Fitzpatrick at Grant Thornton suggested that any changes prior to next April’s new tax year would be minimal.
“Despite fifteen years of continuous economic growth, the Treasury is borrowing in excess of £100m per day.
“It is inconceivable that it would wish to increase public borrowing forecasts, therefore, it is expected that additional revenue will have to come from the tax system,” Fitzpatrick warned.
© Crimson Business Ltd. 2007