Back Where We Started

All this stuff about carried interest and capital gains tax. All along I\’ve been wondering how you could change CGT in a mannerthat deoesn\’t hit entrepreneurs but does the private equity barons. Not that this is what I want to do, but it is what many seem to want to do. Today\’s proposals:

In an announcement to the Commons, the chancellor is expected to introduce a special tax rate for entrepreneurs, although he will not budge on the rest of his reform. The Federation of Small Businesses has campaigned for a special rate of 9% on the first £750,000 worth of gains over a lifetime, and Darling\’s special rate is expected to be close to this.

Still don\’t see how carried interest won\’t qualify for that rate.

2 thoughts on “Back Where We Started”

  1. I don’t want to drone on, but an unintended consequence of the CGT changes will hit the big life insurance companies very, very hard.

    There has been furious lobbying of the Treasury and the ABI expected an announcement of changes today, but yet again Darling has dithered.

    The life offices are old-fashioned subsidy junkies and will be VERY unhappy if they don’t get some concessions. The are prepared to play dirty on this one and there could be some extremely damaging revelations about Treasury incompetence in the next couple of weeks if they don’t get their way.

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