Coalition agreement: CGT reform

Coalition agreement: CGT reform

The parties will seek a detailed agreement on taxing non-business capital gains 'at rates similar or close to those applied to income' with 'generous exemptions' for entrepreneurial business activities. The Liberal Democrats had proposed taxing capital gains at the same rates as income while the Conservatives' manifesto made no mention of CGT.

Bill Dodwell Head of Deloitte's tax policy group expressed a hope that the 'generous exemptions' would extend to employees. 'At present many employees do not qualify for the current entrepreneurs' relief yet their involvement with growing companies is vital ' he said. 'Employee tax breaks help to make a big contribution towards getting good people to take reasonable risks with growing businesses.'

Dodwell also called for the CGT annual exemption to be maintained at £10 100. 'This benefits those on basic rate as well as people who...