Issues surrounding CGT remain 'unclear'

News Article - 24 May 2012
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Although welcoming the chancellor's proposal of entrepreneurs relief on capital gains tax (CGT), the Chartered Institute of Taxation has announced it needs to find out the small print.

Andrew Hubbard, vice president of the organisation, claimed that the Budget 2008 on March 12th should clear up a number of concerns for small enterprises.

The amendments to CGT include the abolition of taper relief and a flat rate of 18 per cent on all profits over the £1 million.

Mr Hubbard claimed that the proposed entrepreneur's relief of ten per cent taxation on all company sales up to a £1 million limit is good news for small companies.

However he warned: "For the larger small businesses, where you might be looking at an exit of three or four million, there's going to be a very significant increase in tax liabilities compared to where we are today."

Until the Budget is released, a number of issues surrounding CGT remain unclear, Mr Hubbard stated.

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