The Coalition Pact of 12 May felt much like a Pre-Budget Report heralding the changes that we should expect at the Budget due by the end of June. Many of the announcements are not surprising having been common manifesto pledges of each party but confirm that we are in for a period of significant change.
The pact includes the long expected reversal of Labour's 18% capital gains tax rate for non-business assets. 'Generous exemptions' for entrepreneurial business activities will be introduced as the rate of tax for non-business assets rises to 'close to [that] applied to income'. The previous taper relief regime succeeded in encouraging entrepreneurs to invest and reinvest in UK businesses and it will be important that these reliefs avoid the new higher rate from encouraging those selling businesses to leave the county depriving the UK of valuable experience and enterprise.
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Home >Articles > Comment: What's needed from the Coalition's emergency Budget
Comment: What's needed from the Coalition's emergency Budget
The Coalition Pact of 12 May felt much like a Pre-Budget Report heralding the changes that we should expect at the Budget due by the end of June. Many of the announcements are not surprising having been common manifesto pledges of each party but confirm that we are in for a period of significant change.
The pact includes the long expected reversal of Labour's 18% capital gains tax rate for non-business assets. 'Generous exemptions' for entrepreneurial business activities will be introduced as the rate of tax for non-business assets rises to 'close to [that] applied to income'. The previous taper relief regime succeeded in encouraging entrepreneurs to invest and reinvest in UK businesses and it will be important that these reliefs avoid the new higher rate from encouraging those selling businesses to leave the county depriving the UK of valuable experience and enterprise.
One driver...
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