HMRC takes new approach to carousel fraud

News Article - 05 June 2007
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Alistair Darling today announced the final changes to the capital gains tax (CGT) regime.

The chancellor explained that there is to be a special "entrepreneur's relief" of ten per cent taxation on all gains up to £1 million.

However all gains in excess of that amount will be subject to the originally-planned flat rate of 18 per cent, he said.

The news was greeted with a mixed response, with Miles Templeman, director general of the Institute of Directors, claiming that although the amendment was a step forward, there were still a number of concerns.

Mr Templeman explained that as the April implementation date is so near, businesses may not have enough time to plan their affairs.

Richard Lambert, director general of the Confederation of British Industry, claimed that for many firms, the £1 million level will be easily reached.

He said: "It is clear that the real wealth and job creators of the UK's economy - selling assets for a lot more - will be seriously clobbered."

The new regulation will not only apply to business owners but to shareholders who are selling on a stake worth over five per cent.

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