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Darling gives CGT concessions to entrepreneurs

Alistair Darling has confirmed a flat rate of 18 per cent capital gains tax will be introduced on April 6 but has offered concessions to small business owners.

Under the revised proposal announced today small business owners will only have to pay 10 per cent tax on any profits they make up to a cumulative limit of £1m. Any profits beyond this will be taxed at the higher rate of 18 per cent.

Darling proposed in October’s pre-Budget report to scrap the lower 10 per cent CGT rate and replace it with an 18 per cent flat rate which spurred months of lobbying from business groups and small firms claiming it stifled entrepreneurialism.

The Chancellor also announced further discussions will be held with the insurance industry to find a solution to the problems caused in the insurance bond market by the proposed changes to capital gains tax.

The 18 per cent flat rate of CGT will create an unlevel playing field in the investment bond market because income from insurance bonds will still be subject to income tax rates – 40 per cent for higher rate payers – while income from other investment products like unit trusts would be subject to the new, 18 per cent rate.

An ABI spokesman says: “The Treasury has today accepted that the announcement on CGT created specific and adverse problems for savers and the savings industry. It is vital that the Government now commits itself to resolving these as soon as possible. We will continue to press this case on ministers.”


Wave of criticism for climate fund

Advisers have slammed Virgin Money’s new climate change fund, claiming it has an excessive charging structure and can easily invest in companies that damage the environment.Hargreaves Lansdown head of SRI Alex Davies says that the biggest problem is the 20 per cent performance fee for beating the Bank of England base rate, which he sees […]

Trade bodies secure European Consumer Credit Directive amendment

The AFB and AMI have claimed victory in securing an amendment to the European Consumer Credit Directive which would have banned the payment of commission.It says that an elevent hour submission from the associations to MEP’s led to the change of the directive.The Consumer Credit Directive passed its Second Reading in the European Parliament on […]

Scottish Life adds 16 new funds to investment range

Scottish Life has added four new investment partners and 16 new funds to its core investment range.  The new partners are Allianz Global Investors, BlackRock, HSBC and Newton, which join Artemis, Baillie Gifford and Invesco Perpetual among others as investment partners.  This brings the total fund choice within the core range to 82 and means […]


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