Norwich entrepreneur criticises Darling’s tax reforms

Source: Exec Digital UK

Date :15/10/2007 10:16:38

Glen White, CEO and president of Norwich media company White Digital Media, has condemned Chancellor Alistair Darling’s proposal to reform the capital gains tax.

The Treasury is predicting a windfall of £350 million in extra tax revenues in the next financial year as a result of the change, which will see taper relief abolished and capital gains tax fixed at a flat rate.

At present executives are taxed 10 percent on their profits from the sales of businesses, but this will rise to 18 percent next April, a move that Mr. White (pictured) has described as ‘detrimental’ to longer term investment.

In an interview with Exec UK, he said that the plan would “restrict and confine smaller businesses rather than encouraging growth”.

“The government has been vocal about promoting freedom for small businesses in the past, so I really can’t understand this change,” he continued.

“This seems to equate to a tax rise on anybody who has held a business asset for at least two years – New Labour is effectively putting a stealth tax on small businesses.

“Surely the increased tax revenue would be cancelled out by those put off selling by the doubling in tax? Mr. Brown has lost my vote – I shall be voting for David Cameron.”

The move to reform capital gains tax has been met with disapproval throughout the industry, with the CBI, Institute of Directors, British Chambers of Commerce and Federation of Small Businesses all writing an open letter to Mr. Darling urging a reassessment.

October 15, 2007