Cameron: CGT changes won't hurt business
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David Cameron promised that Capital Gains Tax reforms will not hurt UK business in his first major speech as Prime Minister.
Speaking in Yorkshire earlier today, Cameron pledged to cut the deficit and to aid business development in the UK through a simpler tax system and a more hands-off approach towards business regulation.
When quizzed on any possible changes to the CGT regime in the next Budget, Cameron said any changes would only make the system fairer and would not hurt British business.
He said: “It is absolutely essential that whatever happens to CGT must encourage entrepreneurs, that is the most important thing.”
Cameron said any reform would make sure to catch any taxpayers “escaping the net” by avoiding turning income into capital, but urged people to remain patient before the announcement on June 22.
He said: “Some people have been getting ahead of themselves when it comes to this.There are difficult choices ahead. But they are unavoidable”.
Business secretary Vince Cable said: “The coalition pledged fairer taxes for individuals. The CGT reforms will be based on that principle.”
But Cameron did pledge to cut corporation tax rates and abolish employers’ National Insurance Contributions on the first ten jobs created by new businesses for the next two years.
Cameron also pledged to deal with the national debt crisis, which he called: “the clearest manifestations of our economic mistakes, the glaring warning sign overhead telling us we have taken the wrong route.”
He also reiterated plans to put the Bank of England back at the heart of regulation and also to set up an independent commission on bank structure to reform remuneration and lending to small business.
Cameron also mentioned the new “one-in-one-out” policy for regulation whereby any minister who wants to bring in a new piece of regulation must first find an existing one to scrap. Cameron said: “For a long time, the whole business of Whitehall has been about creating new regulations. This new rule completely blows that culture apart.”
He added: “There is no such thing as economic destiny. We can transform our economy here. We can turn this around.”
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Readers' comments (1)
Ian | 28 May 2010 7:26 pm
“The coalition pledged fairer taxes for individuals. The CGT reforms will be based on that principle.”
The principled thing would be to completely abolish this anti wealth and savings tax.
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