BVCA Chief Executive, Simon Walker writes to members on the Chancellor's statement on CGT
To: ALL members
From: CEO at BVCA
The Chancellor has this morning announced, that a lower rate of CGT of 10% will be granted on capital gains of up to £1m. A 5% stake will be required to qualify for the relief. The £9k personal allowance will remain. It is also important to note that the £1m will be a lifetime cumulative total, ie. it will not apply per disposal. In other words, once the £1m has been exceeded, the previously announced rate of 18% will apply on all future gains.
Whilst this announcement will bring an end to speculation, we are concerned that the detail of what has been announced does not encourage serial entrepreneurship or the type of investment which is so vital to the UK economy.
With such volatility in the economy, businesses need certainty and predictability and the UK as a whole needs to retain its competitive edge. Now more than ever it is crucial we avoid an erosion of the UK’s competitive position, and part of that is creating an environment which fosters enterprise and innovation.
As always we remain in dialogue with Treasury and wider stakeholders to ensure that the contribution our industry makes to the UK is properly recognised. We will continue to press particularly on areas where we believe the Government can act further to encourage entrepreneurship, small business growth and development, as we made clear in our recent enterprise submission.
We will of course continue to communicate to you any further details and developments.
Yours sincerely
Simon Walker
