http://www.pm.gov.uk/output/Page15653.asp
Answer
*my bold
Details of Petition:
"Alistair Darling yesterday, in his pre-Budget speech, proposed abolishing one of the few real incentives to enterprise (CGT taper relief). Penalising those that take huge personal risk to build tax paying, employment creating businesses because a very few private equity investors pay a low effective rate of tax is very short sighted. In effect those of us who may look to sell our businesses in the future to those better able to build it further now face almost a doubling in the tax we will have to pay. How can this help encourage enterprise? If you believe like me that this move will seriously reduce the attractiveness of talented people to set up a business in this country and increase the chance of people selling businesses prematurely to avoid the higher rate and then reinvest not in enterprise but in property (I'm not sure that's going help the property bubble either!) please sign this petition. Duncan Cheatle Founder, The Supper Club."
"Alistair Darling yesterday, in his pre-Budget speech, proposed abolishing one of the few real incentives to enterprise (CGT taper relief). Penalising those that take huge personal risk to build tax paying, employment creating businesses because a very few private equity investors pay a low effective rate of tax is very short sighted. In effect those of us who may look to sell our businesses in the future to those better able to build it further now face almost a doubling in the tax we will have to pay. How can this help encourage enterprise? If you believe like me that this move will seriously reduce the attractiveness of talented people to set up a business in this country and increase the chance of people selling businesses prematurely to avoid the higher rate and then reinvest not in enterprise but in property (I'm not sure that's going help the property bubble either!) please sign this petition. Duncan Cheatle Founder, The Supper Club."
The Pre-Budget Report announced a major reform to capital gains tax. The proposed changes are designed to deliver a system that is more sustainable and straightforward for taxpayers, whilst remaining internationally competitive. For disposals on or after 6 April 2008 the headline rate of capital gains tax is set at 18 per cent. The tax-free annual exempt amount (currently £9,600) remains in place, ensuring that people with gains below this amount in any one year are not brought into tax.
In January the Chancellor of the Exchequer announced the introduction of a new entrepreneurs' relief to complement the proposals announced at the Pre-Budget Report. Entrepreneurs' relief is available where someone disposes of all or part of a trading business, and also where someone disposes of shares in a trading company, provided they are a company director or employee of the company and have a minimum 5 per cent stake in the business. In either case the relief will provide a special 10 per cent tax rate for up to the first £1 million of gains made over a lifetime.
The new capital gains tax regime will replace layers of complex legislation built up over many decades with an easy-to-understand personal allowance, a single headline rate of tax and a focused tax relief to support entrepreneurs and business investors. This remains in line with the Government's objectives to support business and enterprise and to keep the tax system as simple and as fair as possible.*
In January the Chancellor of the Exchequer announced the introduction of a new entrepreneurs' relief to complement the proposals announced at the Pre-Budget Report. Entrepreneurs' relief is available where someone disposes of all or part of a trading business, and also where someone disposes of shares in a trading company, provided they are a company director or employee of the company and have a minimum 5 per cent stake in the business. In either case the relief will provide a special 10 per cent tax rate for up to the first £1 million of gains made over a lifetime.
The new capital gains tax regime will replace layers of complex legislation built up over many decades with an easy-to-understand personal allowance, a single headline rate of tax and a focused tax relief to support entrepreneurs and business investors. This remains in line with the Government's objectives to support business and enterprise and to keep the tax system as simple and as fair as possible.*
