PBR: Flat CGT rate 'could spell trouble for smaller firms'

Robins highlighted that by introducing a flat CGT rate, Darling has effectively removed the tax advantages available to investors who back unlisted companies. “Doing away with taper relief altogether mean that there is no longer any reason for investors to hold unquoted shares for a longer period,” he said. “It will have the undesirable effect of encouraging short-termist investing.” Robins pointed out that taper relief was originally put in place to encourage investment in unlisted securities and to reward private investors for holding unlisted shares for longer periods of time. ...