Yesterday chancellor Alistair Darling responded to criticism of the 18 per cent capital gains tax rate and an end to business taper relief announced last autumn by proposing a 10 per cent rate on gains of up to £1 million for small businesses from 6 April.
Laurence Slavin, partner with Ramsay Brown and Partners, said that with a CGT of 18 per cent, a GP selling a surgery for £225,000 after 6 April which was bought in 1982 for £70,000 would mean a CGT bill of £25,794. The 10 per cent entrepreneur’s rate will reduce the tax to £14,330 – a £11,464 reduction.
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