CIOT recommends a year’s delay in implementing Capital Gains Tax changes
The Chartered Institute of Taxation (CIOT) recommends that the Government announces that any changes to Capital Gains Tax (CGT) will not come into force until April 2009 and that, in the intervening period, a full consultation on the proposals is carried out. This will enable entrepreneurs to plan their affairs with a greater amount of certainty and make decisions for commercial reasons instead of solely for tax reasons.
The CIOT believes this is the only alternative to the further uncertainty caused today by the statement in the House by the Chancellor, Mr Alistair Darling, on CGT.
Mr Darling confirmed that he will not make any decisions on further changes to the CGT proposals until he is ready in the New Year.
Rob Ellerby, CIOT President, says: “The CIOT is deeply concerned that this puts many small businesses and individuals in an extremely difficult position. All businesses and individuals want to be able to plan their tax affairs with a degree of certainty. Any entrepreneur considering disposing of their business now has scant idea of the tax implications if the sale is after 5 April 2008.”
The CIOT believes that the current uncertainty means that some entrepreneurs may accelerate business sales for tax reasons instead of for commercial reasons.
Rob Ellerby adds: “The problems highlighted are due to the failure to consult on this whole area prior to making the initial announcement in the Pre-Budget Report.”
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For press information contact Simon Goldie on 020 7245 4122 (direct line), 07879 497316 (mobile). Email sgoldie@ciot.org.uk
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