PBR - Capital gains flat rate pledge splits industry

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Long-term savers are likely to reap the greatest rewards from Chancellor Alistair Darling's plans to set a flat rate for capital gains tax (CGT), according to Fidelity International.

However, concerns have emerged surrounding the fate of smaller and medium-sized firms once the new 18% flat rate kicks in. Loopholes allowing private equity bosses to pay little tax will be closed as a result of the CGT change, Darling said yesterday, ensuring those working in the sector pay a “fairer share”. Fidelity International says investors in equity funds held outside of a tax wrapper - such as a PEP or ISA - are likely to emerge as big winners from the overhaul. It points out that, under current arrangements for taper relief, higher-rate taxpayers face a minimum charge of 24% on...

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