| Speculation over Capital Gains Tax (CGT) reforms continue, with the Treasury wavering on whether to offer £100,000 tax-free gains to small business owners, or whether to charge them at the existing 10%.
Taper relief on CGT will be removed in April 2008, but small business organisations claim that this move would deal a major blow to business owners looking to retire.
The Treasury’s initial offer of £100,000 tax-free gains was welcomed by the small business community, even though they felt it was not enough to offset the impact of removing taper relief. This new move has been seen by many as another blow to SMEs, with 16,000 people signing a petition against the proposals.
The Confederation of British Industry (CBI), the Institute of Directors (IOD), the British Chambers of Commerce (BCC) and the Federation of Small Businesses (FSB) continue to oppose the proposals.
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