The UUP’s MP, Lady Hermon, has received support from a Commons Treasury Committee Report released this week, which criticises new Government proposals on Capital Gains Tax (CGT). She said:
“The conclusions of the Commons Treasury Committee brought no surprises. I don’t believe for one minute that Chancellor Alistair Darling clearly thought through the impact on small businesses generally, or specifically on those in Northern Ireland, of introducing a flat rate 18% Capital Gains Tax.
Whilst I understand the intention of his proposal to simplify reliefs and also ‘clip the wings’ of private equity firms, the effect on small businesses would be catastrophic, never mind the damaging impact on employee shareholders.
For a Chancellor who is doing little right within a Government getting so much wrong, the time between now and April 2008 presents a window of opportunity to get at least something right for a welcome change . They have a few months to ditch these proposals, go back to the drawing board and come up with new measures that are workable and sensible but don’t penalise small businesses the way the present proposals surely would.”
November 28th, 2007