PRESS RELEASE

DONT BE FOOLED BY THE SMOKE AND MIRRORS, SAYS TAPERRELIEF.COM, DARLING IS MISSING THE POINT

- Research reveals that 80% increase in CGT is nearer 800% -

(London, 7/11/2007) Research carried out by TaperRelief.com has revealed that even those retiring businesses who will be able to take advantage of the governments latest concession will still pay more than double the amount of capital gains tax under the system proposed by the Chancellor.

The effects of the government plans to abolish taper relief and introduce a flat rate of capital gains tax mean that many businesses will be hit by tax increases of up to 700%, as show in a case study by TaperRelief.com:

·                     A business sold after two or more years for £150,000 in the existing system will stand to pay the government £3,520 in capital gains tax.

·                     Under the system initially proposed by Alistair Darling in the pre-budget report, the same business sold after April next year will stand to pay £25,344

This is just over SEVEN TIMES the amount they would pay if the business was sold before the changes are implemented.

In response to the ongoing outcry amongst the UK business community, particularly regarding the effect of the tax increase on those due to retire, the Chancellor has since put forward a tentative £100,000 figure that would be exempt from the tax with the remaining capital gains taxed at the new rate of 18%. This means that a retiring business person who sells a business for £150,000 after the April changes will stand to pay £7,344. This is still DOUBLE the amount that they would pay if their business is sold now.

In the case of a business worth £300,000, the difference is even more extreme. Under the new system, even with the first £100,000 made exempt, the retiring owner of the business would pay almost five times as much tax as he would under the old system.

Duncan Cheatle of the Supper Club, who lodged the Downing Street petition for the maintenance of taper relief, comments:

“This just goes to show how poorly thought through these proposed changes are. Even if the amendment that is intended to appease the retiring business community goes through, many business owners will still be paying twice the amount of tax. What is more, younger businesses, many of whom are fuelling the British economy in their creation of jobs and economic growth, are those that will feel the full force of the changes. The Chancellors plans for capital gains tax appear to be not a simplification so much as a money spinner.”

William Berry, leading entrepreneur and MD of Net121, agrees:

 “Businesses should take little comfort in the concessions suggested by the Chancellor. As this case study has exposed, those retiring will still be hit hard by these outrageous tax hikes. Darling is again missing the point, that the business c