ALMR pushes for further CGT changes
The Association of Licensed Multiple Retailers (ALMR) will push for further amendments to the watered down capital gains tax (CGT) announced by Chancellor Alistair Darling.
The group said although it welcomed yesterday's announcement that plans for a flat tax rate of 18 per cent would be replaced with a system in which gains of up to £1m will be taxed at 10 per cent, the "serial entrepreneurs who make up the pub industry" needed more help.
In a statement, chief executive Nick Bish said: "Our members are not city fat cats running private equity firms; they are hard working small businessmen - most of them are serial entrepreneurs, re-investing the gains made from developing their pubs and bars in new business ventures. These proposals will actively impair this virtuous cycle."
The ALMR continus to call for the 10 per cent rate to be applied where any capital gains are re-invested in a new business venture - whatever the size of gain.
"This announcement goes some way towards addressing our concerns," said Bish.
"The 80 per cent tax hike would have hit the pub trade hard because of the large investment in high cost assets.
"But because the £1million threshold is cumulative, the concession will do little to help the serial entrepreneurs who are the backbone of our industry.
"This is a mess of the Chancellor's own making. The way in which the change has been handled has badly damaged trust between business and his Government. However welcome yesterday's announcement is, it does little to repair that relationship."
