The Chancellor Alistair Darling’s Capital Gains tax rethink could be wide open to abuse it is claimed, with the authorities trusting almost entirely the honesty of business people.
The controversial “Entrepreneurs Relief” will not be tracked by the Revenue and Customs and they decided not to keep records stating that “It would not be the best use of our resources.”
The relief is spread across a persons lifetime and allows an individual to make up to £1 million with a capital gains tax of just 10% from the sale of stakes in businesses of 5% or more.
Mike Warburton of accountants Grant Thornton thinks its bizarre that no records will be kept, asking “What is to stop someone claiming the relief again and again every time they sell a business.” He claims the system is wide open to abuse, claiming “It just shows how ill thought out by the treasury it has been.”
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