05 October 2009 by Jim
So after 15 weeks of review, chancellor Alistair Darling finally
revealed his much-hyped u-turn on capital gains tax. Except a drop
from 18% to 10% for earnings up to a £1 million over a lifetime
isn't really much of a u-turn, is it?Sure, it's good news for all
the micro and small businesses unlikely to sell for more than the
threshold, and in fairness, that accounts for roughly 80% of the
business population.But that's somewhat missing the point.
Enterprise thrives on investment and on the edge of a recession is
it really smart to actively discourage the very people making those
investments? Will you now think twice about selling and starting-up
again?Supper Clubs'
Duncan Cheatle, who led the Facebook
campaign against the rise, could be heard from across the
capital as he vented his fury. He told Startups that the announcement
was "a complete disaster and a slap in the face".Tory shadow
minister Mark Prisk was unsurprisingly quick to let us know he
thought "growing firms have been completely ignored" and that
business could no longer trust Labour. Maybe that's true. Or is it
a bit rich from a party that levied capital gains tax at 40% when
it was in power?