tag:blogger.com,1999:blog-799522112388854469.post-2295987582373816372007-10-11T18:33:00.000Z2007-10-11T19:02:46.316ZGosh, everyone (e.g. <a href="http://www.realbusiness.co.uk/daily-insights/daily-insight/4824336/prebudget-blow-to-entrepreneurs.thtml">Real Business</a>, <a href="http://petitions.pm.gov.uk/SaveCGTrelief/">Supper Club</a>, <a href="http://www.fsb.org.uk/news.asp?REC=4301">FSB</a>, etc.) really is up in arms about Darling's new flat CGT tax. I thought we free-marketeers were supposed to like flat, low taxes? Isn't that what our next chancellor, <a href="http://news.bbc.co.uk/1/hi/uk_politics/4220838.stm">George Osborne, keeps talking about?</a><br /><br />Sure, if you sell your (long-established) business in May of next year, then 18% vs 10% looks tough. But if you buy some shares now, and make some money, and sell them in May of next year then 18% vs 40% looks good to me.<br /><br />We do very well in this country when it comes to government-approved ways of avoiding capital taxes (<a href="http://www.hmrc.gov.uk/eis/index.htm">EIS</a> allows you to invest in an unlisted company and pay 0% CGT; <a href="http://www.hmrc.gov.uk/shareschemes/emi-new-guidance.htm">EMI</a> allows you to get share options in a company and pay 0% CGT; <a href="http://www.hmrc.gov.uk/isa/index.htm">ISAs</a> let you buy listed shares and, yes, pay 0% CGT; plus Child Trust Funds, etc. etc. Don't rock the boat, all this other stuff might fall off).<br /><br />Politicians usually tinker around the edges of the tax system. You've got to hand it to Darling for being a bit ballsy - it is quite daring to just cancel, in one afternoon, a plank of the tax system that has been around for decades. Well done. I still might sign <a href="http://petitions.pm.gov.uk/SaveCGTrelief/">Duncan's petition</a> though.Bruce Greighttp://www.blogger.com/profile/09640374979490178541noreply@blogger.com