The CBI have sent an open letter to Chancellor George Osborne stating their concerns about the proposed rise to CGT in the forthcoming emergency budget on 22 June.
The CBI argues that decreasing the deficit should be done by controlling spending rather than increasing taxes. Specific points made by them include:
- The CBI wants to see a broad definition of business assets (which would benefit from tax relief) to prevent disincentives to investment or start-ups, and the tax should be structured to minimise the impact on long-term investment.
- The CBI is encouraged by the Dyson commission's support for the R&D tax credit and urges the Government to retain it in its current form.
- Changes to tax treatment of pensions, planned to come into force from April next year, are unnecessarily complex and expensive to administer, and in their current form would make it harder for UK businesses to attract and retain global talent.
Undoubtedly, their concerns are echoed across the country. I have spoken with many clients concerned about their own position if capital gains tax increases on 22 June. Whilst there are steps which can be taken prior to then, the time for doing so is getting increasingly tight.
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