Give mutual companies tax breaks, says Nick Clegg

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Employee-owned companies such as the John Lewis department store could be given capital gains tax (CGT) breaks, under plans being drawn up by deputy Prime Minister Nick Clegg.

The plans are part of a bid by Clegg to encourage more employee-owned companies to be set up because the government thinks they are well run, reports the Telegarpah. In a speech today, the deputy Prime Minister will formally unveil the start of a six-month Treasury review of tax rules around such companies. Clegg signalled his crusade to encourage companies to convert to mutual status in a speech in January in which he spoke of establishing a "John Lewis economy". Fiscal changes could include new capital gains tax breaks to get people to sell their companies to staff rather than to...

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