CGT patch-up fails to completely repair damage from pre-budget say manufacturers

Release date: 24/01/2008

Today’s announcement on Capital Gains Tax is helpful in providing an incentive for entrepreneurs and investors in business assets according to EEF, the manufacturers’ organisation.

However, this still leaves business picking up an additional £700m tax bill per year. Furthermore, it sends mixed messages about the attractiveness of the UK as place to invest in business and will not repair all of the damage done by the Chancellor’s pre-budget proposals.

Commenting, EEF Chairman, Martin Temple, said:

“Today’s announcement is a helpful concession. However, the fact remains that we should not be in this position in the first place. This was a fundamentally bad decision that will mean, despite today’s patch-up, business still being used to fill a hole in the government’s finances.

“At a time when the UK’s tax position is heading in the wrong direction, today’s announcement sends mixed messages about how favourable the UK tax regime is for investment.”

ENDS

Notes for editors