UK's Darling intends to go on with flat capital gains tax of 18 pct |
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Thu, 18 Oct 2007 11:25
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LONDON (Thomson Financial) - Alistair Darling, the new Chancellor of the Exchequer, said he has no plans to drop his controversial plans to reform the UK's capital gains tax regime.During questioning from MPs, Darling said he 'intends to proceed with the changes' though he conceded that some people 'are not happy' with the proposals.He insisted that creating a single capital gains tax rate is the right thing to do as it helps simplify the tax system.Darling's proposed changes, announced in last week's pre-budget report, have come under fire from MPs on both sides of the House of Commons as well as all the country's business lobby groups.Darling's planned reforms involve bringing in a flat rate capital gains tax of 18 pct, replacing the current 'taper relief'.One aim of this reform is to prevent private equity firms from benefiting from low tax, but business groups say companies from all sectors will suffer.Shadow Chancellor George Osborne says the Conservatives, who are siding with businesses on the issue, will find a replacement for taper relief if they are voted into power.The Conservatives are arguing that Prime Minister Gordon Brown and Darling have sacrificed a potent weapon in the battle for business when they scrapped the 10 pct rate of capital gains tax for business assets held for at least two years in favour of a single 18 pct rate.pan.pylas@thomson.compp/slmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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UK's Darling facing increasing pressure to rethink capital gains tax changes 