Chancellor to cut taxes for investors
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.TAX BREAKS for business investors will be among the key handouts announced in the Chancellor's pre-Budget statement tomorrow.
Gordon Brown will announce that capital gains tax for investors in all companies is to be slashed at a cost of up to pounds 150m a year to the Treasury. In addition Stephen Byers, the Secretary of State for Trade and Industry, who has worked closely with the Chancellor on the "enterprise strategy", will announce on Wednesday the creation of a pounds 100m hi-tech venture capital fund.
In his statement, Mr Brown is expected to say that British investment has been too low; that the Right encouraged enterprise at the expense of fairness while the Left wanted fairness at the expense of enterprise. He will present the tax breaks as a move to encourage hi-tech companies, but it will go wider than that, and will be available to all investors.
Investors will receive a reduction in capital gains tax to 10 per cent if they hold an asset for 10 years but the Chancellor has been told that this is too long and that new companies will need a quicker return.
Mr Brown will say that he is planning to allow a fall each year from capital gains tax of 40 per cent, cutting to 20 per cent the tax paid by an investor selling his holding after three years. It would drop to 10 per cent after five years. There will be a roll-over of capital gains for investors who move from one company to another.
Leading article,
Review, page 3
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments