More on the Budget
As the wheels continue to come off Brown’s Darling’s budget, I am receiving a lot of correspondence from local business. They make an interesting and particular point. A lot of them were encouraged (rightly) by the Government to take out Enterprise Management Incentives - essentially a way to give employees shares in a tax efficient manner. And of course, the reward for these people working in a small business for low salaries was a capital gain at the end (the end being many years of hard work). Now they find that the tax on the gain has just been increased by 80 per cent and they are furious. I will be asking the Treasury just how many of these schemes exist, just to establish how many are furious.
Glenlivet Guy said on October 12th, 2007 at 12:57 am:
You may find you will be able to demolish this outrageous change from 10% to 18% by reading http://archive.treasury.gov.uk/budget/1998/irl7.htm .This basically explains why the then Chancellor (one Gordon Brown) introduced taper relief and how to be very fair and reasonable, they were going over 5 years to phase out retirement relief.
We were all very impressed by this well thought out change which without doubt has contributed enormously to the success of the UK economy over the last 10 years. I fail to understand why the PM and Chancellor wants now to scupper one of his best ideas and for which he deserved, like Bank of England independence, enormous credit. The ramifications of this 2007 proposed change are enormous…if you can go from 10% to 18%, why if public finances get into even worse state, why not go to 20% or indeed 40%.Its the private sector that pays the public sector,and with oil running out, and little natural resources left, no private sector and we are all down the pan.