Flat_Rate Capital Gains Tax Kills Enterprise
Published / Last Updated on 02/09/2008
Flat-Rate Capital Gains Tax Kills Enterprise
The Enterprise Investment Scheme Association has warned, the 18 per cent flat rate of capital gains tax is choking enterprise by reducing the incentives for investing in private companies. In response to the Government’s consultation into the accessibility of the EIS, director Martin Sherwood attacks the CGT reform brought in by Alistair Darling in this year’s budget He says “The flat rate change is having a dilutive effect on the tax benefits offered in EIS. Given the period for application of funds, it will be another two to two and a half years until we see the real effect on the system”.
Sherwood believe that EIS should be given CGT deferral and says an increase in income tax relief to 30 per cent would be “adequate compensation” and bring funds in line with venture capital trusts.
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