Chancellor keeps life companies hanging

Professional Adviser
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In a statement in the House of Commons this morning, the Chancellor of the Exchequer, Alistair Darling, brought relief to entrepreneurs threatened by changes to the capital gains tax regime, but still had no clarity to offer the offshore life industry.

British small businesses had faced disadvantage under the new flat-rate 18% CGT because of the removal of indexation and taper relief. Darling has now announced that with effect from 6 April, a 10% rate of CGT will apply to the first £1m a year of qualifying gains by an owner, officer or employee with more than a 5% stake in a business. He said the measure was in accordance with representations from the small business community, estimating that 80,000 investors could benefit in the next year, at a cost to the Government of £200m a year. Shadow Chancellor George Osborne said that Darling ha...

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