Alistair Darling addresses the Confederation of British Industry (CBI)
In his address to the CBI conference earlier this week Alistair Darling announced that he does listen to businesses and intends to publish his final capital gains tax proposals "in the next three weeks".
Mr Darling accepted that his proposals to introduce a single rate of capital gains tax had been controversial but stated that the government was working with business organisations and listening to the views expressed. He further confirmed his aim for a simplified tax system and stated that capital gains should pay a “fair” (?) rate of tax but stated that the government also wanted to reward investment. His view appeared to be that by taxing gains at a lower rate than income and setting that rate at a competitive level world-wide this had actually been achieved. However he then reiterated that he would publish the proposals shortly.
I have no idea from the speech whether the rate will change, or not (if I had to guess I would say not), whether there will be a distinction between business and non-business assets (again my guess would be not) or whether he will introduce something to help small business owners (probably). One of the key things he could (and in my opinion should) address is the cost of the loss of indexation on assets held at March 1982, currently worth more than 100% of the value at that date (my guess is unlikely to be changed).
All I can say is watch this space!
The speech is available in full by clicking here.
I have no idea from the speech whether the rate will change, or not (if I had to guess I would say not), whether there will be a distinction between business and non-business assets (again my guess would be not) or whether he will introduce something to help small business owners (probably). One of the key things he could (and in my opinion should) address is the cost of the loss of indexation on assets held at March 1982, currently worth more than 100% of the value at that date (my guess is unlikely to be changed).
All I can say is watch this space!
The speech is available in full by clicking here.
