Darling backtracks on CGT

The chancellor Alistair Darling is today expected to make a U-turn over plans to bring a single rate of capital gains tax (CGT) into play, following pressure from small business (SMB) lobby groups that deeply opposed the reform. Darling looks set to announce in the Commons later today that the government will introduce a lower …

[Dave Bell]

So the rich still pay less tax?

Funny how Labour used to be the party of the workers.

[Anonymous Coward]

@Dave Bell

Now it's the party of the donors..

Cocktail party that is.

[IanKRolfe]

@Dave

The concession was for small businesses, i.e. ma & pa operations that have a sale value of less than £750k. These companies are often operated on the basis that the sale of the company on retirement IS the pension plan - and £750k doesn't go all that far as an investment to live off for what could be up to 40-50 years from retirement. Not to mention that this capital gains tax (rather like inheritance tax) is on selling a business who's value has been largely built by people investing money in their business that has *already been taxed*. It's double-dipping, which even at 18% is scandalous.

[Aram]

@Dave Bell

They come across as a slightly more caring version of the Tories who financially screw you that little bit more. Their attitude on extending the life of ISAs was ridiculously patronising.

So, we have them & the Tories (who I still don't trust as a result of all of their shenanigans in the 90s). What's left? Lib Dems, Greens & (ha!) UKIP.

Is it any surprise that the electorate is so apathetic?

[Spleen]

@Dave

No, it was the party of workers with union cards. The Labour attitude to non-unionised workers, entrepreneurs and the unemployed has always been "I'm alright Jack, so go fuck yourself."

[Andy Clyde]

@IanKRolfe

Surely it's triple-dipping? I'm taxed on my income, which I then invest in my company. My company then makes a profit, which is taxed (there used to be a £10K annual threshold on corporation tax but this has been removed so you pay tax on the first penny of profit). Then you sell the company and get taxed a third-time.

[Eileen Bach]

Skinny dipping

Can we get a Ron Paul clone done in time for the next U.K. Election?

[Matt]

@Aram

Got to get my Yes Minister quote in here:

"You're running around stirring up apathy."

[Anonymous Coward]

@Dave

These bloody rich people, creating jobs and providing goods and services! They should all be shot- it's not as though they paid any tax in the building and running of their businesss....

[Kwac]

@anonymous coward

That's what they pay accountants & politicians for.

e.g. http://taxprof.typepad.com/taxprof_blog/2005/11/microsoft_slash.html

or further back http://www.motherjones.com/news/feature/1998/01/silverstein.html

or even further back (70s?) the press ran the story of the FAMILY (whose name I forget) that owned land/cattle in the USA & a few hundred Dewhurst butchers shops in the UK paid UK 10 pounds tax.

[Turbojerry]

Simple answer

Sell the your company for £1 to Cayman Island company you set up for ~£1k, have your buyer buy that your company from the Cayman Island company, take a tax holiday and the money out of the Caymans, zero tax, and a nice world trip to boot.