ALMR: CGT reforms should go further
A trade body has called for the Chancellor to offer further help to the serial entrepreneurs who make up the pub industry under the Capital Gains Tax (CGT) reforms.
Alistair Darling announced a further and significant climbdown on his controversial CGT reforms last week.
Entrepreneurs will now pay a 10% rate of tax on capital gains up to £1m accumulated over a lifetime.
But taper relief is still to be scrapped and the set rate of 18% will be in place for all capital gains when selling a business after the first £1m.
The Association of Licensed Multiple Retailers (ALMR) welcomed the move but said it would be pressing for further amendments.
Chief executive Nick Bish said: "Because the £1m threshold is cumulative, the concession will do little to help the serial entrepreneurs who are the backbone of our industry.
"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 wants the 10% rate to be applied where any capital gains are re-invested in a new business venture.
Bish added: "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 Thursday's announcement is, it does little to repair that relationship."
