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Darling agrees his CGT changes are 'controversial'
by Susie Hughes at 10:25 29/11/07 (Political News)
Chancellor, Alistair Darling, has acknowledged his Capital Gains Tax reforms are 'controversial' and that he has been 'listening' to the criticism which has been levelled at them.
Mr Darling was addressing the CBI conference, one of the organisations who have campaigned against the proposals to abolish taper relief on the grounds that it will damage the entrepreneurial spirit.

He is expected to make his final decision known to Parliament in the next three weeks.

Mr Darling said: "I know that my proposals to introduce a single rate of capital gains tax have been controversial. That was inevitable.

"We are working with the CBI and other business organisations to listen to what you have to say. I expect to publish final proposals in the next three weeks.

"But many have long called for a simplified tax system and have long complained about the complexity of the tax system.

"And we have to recognise that one person's tax exemption is another's complexity - simplification is not the easy option. But it is the right one wherever it is possible.

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"Let me say this on the principle: capital gains like any other profits ultimately come from the strength of the economy. So I believe it is right and fair that they pay their share in tax as a contribution to the economy's future strength.

"But because we want to reward investment, we are right to now tax gains at a lower rate than income - and the new single rate is among the most competitive in the world, is less than half the top rate for income, and is also less than half what it was ten years ago. It is also right to make the system more straightforward and sustainable, with a tax that is easier comply with.

"I am listening to what you say and will report to Parliament very shortly.

"Britain has 800,000 more businesses set up in the last ten years and OECD says UK has lowest barriers to entrepreneurship of all its countries.

"I am determined to do everything I can to keep it that way and keep Britain as a good place to do business.

"So in the run up to the Budget, I want to continue to work with the CBI and other business organisations to ensure that encouraging enterprise remains at the heart of this approach."

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Susie Hughes © Shout99 2007

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Darling agrees his CGT changes... Susie Hughes - 29/11
    Re: Darling agrees his CGT cha... greybeardcons - 29/11
       Re: Darling agrees his CGT cha... brianc - 29/11
          Only three weeks to go till Ch... brianc - 1/12
       CGT lowered = crash? VXJK - 3/12
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    Re: Darling agrees his CGT cha... greybeardcons - 29/11
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          Re: Darling agrees his CGT cha... greybeardcons - 29/11
             Re: Darling agrees his CGT cha... alanp - 30/11
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