More generous tax incentives to encourage investment in small and high-risk companies are being seriously considered by the Chancellor of the Exchequer, to help mitigate the impact of capital gains tax changes. Financial Times, Daily Telegraph
Business attacked as “by no means enough” a concession already agreed by the chancellor in response to the vociferous campaign against his pre-Budget report decision to scrap the 10%rate of CGT.
The Chancellor will announce shortly that the government will reintroduce a form of retirement relief – a CGT exemption for people who sell their business and then retire.
The tax-free allowance could be £100,000 or more, according to government insiders.
The Treasury has yet to finalise details of the scheme but insiders said it would not replicate the previous retirement relief, axed by Gordon Brown in 1998.
The new tax break will be simpler than the old relief, which linked the tax rebate to how long the asset had been held, as well as applying only to people aged 50 and over.