IoD analysis shows the following:
– 230,000 individuals a year have gains exceeding the annual exemption.
– Half of these people have modest gains, of up to £25,000.
– Two thirds of gains are made on shares and securities, assets which represent vital investment in businesses.
– People likely to suffer include those with small shareholdings in businesses in which they work, and those who have chosen to invest in shares and in property in order to provide for their retirement so that they are not a burden on future taxpayers.
Miles Templeman, IoD Director General said:
“The Government would be sensible to note the strength of feeling on this issue in the business community and among ordinary investors in shares and property. The more we look at the CGT increase, the more we can see that it will directly penalise many thousands of people who cannot be described as rich. And it will indirectly penalise those who want to live in a thriving economy, because it will deter enterprise and thereby damage growth.
“The Government says that it cares about the impact of the tax system on enterprise. It now needs to prove it. A generous taper relief would support long-term investment. If that is not introduced, then a broad definition of the business assets that will be protected from the increase, including all shares that are held by directors and employees, will be vital.”
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