CGT avoidance schemes on increase again; LEGAL FINANCE.
Darren Holdway, of HW Chartered Accountants in Birmingham, says experts are already seeking ways to get round the legislation.
"Whilst in the public arena, the Chancellor continues to face a daily lobby from all quarters of the business community, behind the scenes financial advisors, accountants and analysts are developing and implementing schemes that will enable company owners to avoid what is a punitive tax and an unprecedented change in regulations," he said.
"Headlines have focused on the 80 per cent increase in capital gains tax - from a low of 10 per cent to 18 per cent. The reality though is that having abolished both indexation and taper relief, many company owners could end with a near quadrupling of their tax - penalising those who have held on or developed their family businesses since 1982."
Schemes enabling business owners to avoid the hefty tax rise include making greater contributions to pension schemes - up to a maximum of pounds 225,000, or in some cases double that - and transferring shareholdings into trusts prior to the fiscal year end, Mr Holdway said.
"The proposal to ease the burden on company owners by introducing a retirement relief band of around pounds 100,000 has been met with a hollow laugh," he noted. "If it was intended as consolation to retiring business owners, it is wide of the mark.
"There's a lot of midnight oil burning amongst financial advisors and the next three months will see a flurry of activity - unless the Chancellor makes significant changes to his 'one size fits all' regulations."
|Printer friendly Cite/link Email Feedback|
|Publication:||The Birmingham Post (England)|
|Date:||Jan 11, 2008|
|Previous Article:||Up-and-coming barristers take No5 Chambers tenancy; LEGAL FINANCE.|
|Next Article:||Pilot scheme to offer firms free law clinics; LEGAL FINANCE.|
|Legal and Finance: Clampdown on tax dodgers.|
|Uni chiefs fail in landmark Euro tax case.|
|LEGAL & FINANCE: Multi-million pound blitz on offshore accounts.|
|CONCERN AT FORTHCOMING TAX RISE; BUDGET 2008 in association with Deloitte.|