One of the chancellor’s new regulations on tax has been the subject of strong criticism from the UK’s entrepreneurs and small business owners.In a move designed to ensure that those working in the lucrative world of private equity pay a fair rate of tax to the treasury, Alistair Darling yesterday announced that he plans to scrap Capital Gains Tax (CGT) taper relief, replacing it with one flat rate of 18 per cent.Taper relief ensures different rates of CGT for different types of investment – and goes as low as ten per cent.Groups representing SMEs have been particularly critical of the proposals, saying that they will do nothing to aid small business finance."This will be a bitter pill for those that had built up their business with the expectation of selling out with only a ten per cent tax charge," Rhona Irving, head of tax at PwC in Scotland, told the Scotsman."It will be interesting to see how many of these businesses are sold in the period up to April 5th."As with all changes to the tax regime there will be significant winners and losers. Those who held non-business assets such as many properties will see their tax rate fall from 24 per cent to 18 per cent." © Adfero Ltd

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