Comments: Modest in most respects - some initial thoughts on Darling

As somone who started a private company 15 years ago, I am rather disgruntled that there will be no retirement relief or asset taper relief when I sell up. Necause of taper relief, I had planned to keep reinvesting profits in the business. Now it seems I may as well get into buy to let property. The galling thing is that its being spun as a tax on private finance, but I'm sure that their top flight accountants will be able to minimise the effect. Not so for the small business. I'm sure it would have been possible to keep some form of taper relief for long term owner managed businesses.

Makes me wonder why GB reduced the time to qualify for maximum relief down to two years. That seemed perverse at the time and I feel that the long term owner manager is suffering for that decision.

Posted by jones at October 9, 2007 09:30 PM

The move on inheritance tax seems to me a total red herring. On the Sunday Times Money section front page this week, it explained how a very simple Trust could be set up to create this exact state! So what has actually changed?
This just means a visit to a lawyer is no longer needed, to ensure both allowances are used.
My understanding was that the Tory proposal went much further in increasing the allowance to 1m per person, which a savvy tax lawyer could then double to 2m for a married couple.

Posted by Simon at October 10, 2007 07:56 AM

Small business has a right to be angry about this. Now second home owners will pay the same CGT rate as those who have built up a business.

In terms of inheritance tax the Tory proposals, by the same token, implied a husband-wife threshold of 2m. But the fact that there is a cost to Darling's move - 1.4 billion in a full year by 2010 - implies that not everbody was availing themselves of tax planning.

Posted by David Smith at October 10, 2007 10:04 AM

Jones,

To be honest you are better off speaking to a tax lawyer. Accountants work for the taxman. A good tax lawyer will cost you but so long as the number crunchers can do the figure work, you will probably get further employing a brief.

Posted by F.Fox at October 10, 2007 12:39 PM

Now, Simon,

Why do you think that CGT was changed for second home owners?

Could it be that 50% of wealth in this country (at least for the moment) is in property?

And Mr. Broon trousers is a politician....

Posted by F.Fox at October 14, 2007 07:55 PM
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