News
£100,000 comfort for SMEs as government backs down over capital gains reform
Print SMEs can breathe a sigh of relief following the government's planned U-turn over capital gains tax (CGT) taper relief, reported today (31 October).
Chancellor Alistair Darling and Prime Minister Gordon Brown have bowed to pressure over plans announced last month to roll out a single 18% rate of CGT and will now offer £100,000 in tax relief for small businesses looking to sell and retire.
The print industry had rounded on the reform plans, with print M&A expert Paul Holohan, chief of Richmond Capital Partners, predicting an "immediate and personal" problem for many print owners.
The flat rate reform, which was due to take effect from 5 April next year, would have meant a near doubling of tax on sale of assets, from 10% to 18%. Under the new plans, businesses will pay far less, reported The Times.
Industry groups, including the CBI, the British Chambers of Commerce and the Federation of Small Business, mounted a joint offensive, urging the chancellor to "suspend his decision".
The BPIF declined to comment until the decision is confirmed.
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Darling: U-turn
