Relief for small business welcome but this is still a £700 million tax hike
24/01/08 | 13:38
David Frost, Director General of the British Chambers of Commerce, said:
"It is welcome that the Government has recognised the concerns we raised about the damaging nature of the CGT reforms on small business. Keeping the 10% rate on gains upto £1 million will be a great relief for many small business owners, allowing them to gain from the risks they have taken over their career.
"What can not be ignored however, is that the ultimate impact of these changes is going to be a £700 million tax take from business. It is also clear that this has done nothing to simplify the taxation system, the original stated aims of the changes.
"At a time when the economy is facing a downturn the Government is taking yet more money from business. The Government should not have changed a Capital Gains Tax system that was working well and helped to foster an entrepreneurial spirit in the UK."
ENDS
MEDIA CONTACT:NOTES TO EDITORS:The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.