Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Call for 2009 start to capital gains reforms

13 December 2007
Categories: News , Capital Gains
More reactions to Chancellor's 'non-announcement'

More tax professionals have expressed frustration that the Chancellor has delayed his promised announcement on capital gains tax reform.

And they have suggest that the Treasury does not instigate the proposed changes until April 2009 at the earliest.

PKF tax partner Peter Penneycard criticised Alistair Darling for not understanding 'the chaos his hasty proposals would cause'.

Mr Penneycard continued: 'While it is important that the Treasury now takes the time to think this through properly, it is no help to those entrepreneurs who were being pushed into selling their business by the Pre-Budget Report announcement of the hike in CGT for business owners.
'I call on the Chancellor to delay these changes until April 2009 so that business people put in an awkward position by his proposals can have both clarity on the tax position and the time to act upon it.

'To do anything else would be manifestly unfair. Entrepreneurs should not suffer to spare the Chancellor's political embarrassment.'

The CIOT also backed the April 2009 deadline, and suggested and that in the intervening period a full consultation on the Chancellor's proposals is carried out.

The organisation's president, Rob Ellerby, said: “[We are] 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.'

Finally, Richard Mannion of Smith & Williamson also called for a 2009 start date, and said the result of the Chancellor's lack of action is 'a very messy and uncertain position, which is wholly unhelpful to numerous smaller businesses, entrepreneurs and individuals who may have very little time left to take action on major decisions once the shape of the CGT system for 2008/9 onwards is known'.


Categories: News , Capital Gains
back to top icon