Alistair Darling has doubled the entrepreneurial relief for capital gains tax (CGT) in a bid to make it more attractive for what he called "wealth creators and innovators" to set up their own businesses.
The Chancellor also confirmed he will not increase CGT from its current rate of 18%. CGT relief, which allows entrepreneur's to pay just 10% tax on their first £1m of capital gains, will double to a £2m threshold. Darling says the measure will help encourage innovation and small business investment in the UK. Many analysts had expected CGT would be increased to the rate of income tax, as it currently enables the wealthy to pay less tax by receiving shares instead of income. CGT relief was one of a series of measures Darling announced in a bid to "make sure the tax system does no...
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