In recent discussions, the potential impact of capital gains tax (CGT) changes has raised significant concerns.
- Evelyn Partners CEO, Paul Geddes, warns of a “stifling” effect these changes could have.
- Upcoming 30 October Autumn Budget might include various tax adjustments.
- Geddes highlights risks to entrepreneurialism and potential business exodus.
- Survey indicates 46% of business owners fear negative consequences of CGT hikes.
As the UK government prepares for the forthcoming Autumn Budget on 30 October, considerable attention is focused on the potential restructuring of capital gains tax (CGT) policies. Paul Geddes, CEO of Evelyn Partners, has voiced substantial concerns, suggesting that these changes could significantly dampen entrepreneurial activities and investment within the country. His remarks underscore a broader anxiety about the direction of economic policy amidst efforts to address a looming public spending deficit.
Geddes articulates a viewpoint that if CGT rates are increased, this could lead to adverse effects on the UK’s business landscape. There is a fear that higher taxes on capital gains might deter individuals from establishing new businesses, consequently hindering economic innovation and growth. Furthermore, there are apprehensions that such tax hikes could prompt current business owners to consider relocating their operations abroad, seeking more favourable fiscal environments.
In a recent survey conducted by Evelyn Partners, which focused on business proprietors with annual revenues exceeding £5 million, over 46% of respondents expressed concern that potential CGT increases would negatively impact their business decisions. This sentiment reflects a palpable unease within the business community regarding the stability and attractiveness of the UK as a destination for business ventures.
The prospective adjustments in CGT are part of a broader spectrum of planned fiscal changes, which also include revisions to inheritance tax and adjustments to pensions tax-free lump sums. These proposed measures are part of the government’s strategy to bridge significant gaps in public funding. However, the potential repercussions of such changes extend beyond immediate fiscal considerations, potentially influencing long-term strategic decisions made by businesses and investors alike.
The discourse surrounding CGT policy highlights critical concerns regarding the future landscape of UK entrepreneurship and investment.
