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Analysts warn that investors will still lose out on the capital gains tax, despite the proposals being watered down by the Chancellor.
Entrepreneurs across the country in share ownership schemes will be hit with 18 percent tax on profits, up by as much as 13 percent, and it is feared that the move will also create imbalances in the investment bond market.
"In one fell swoop, he (Darling) has hit those people that he would least want to hurt and at the same time significantly benefited the very wealthy speculative section of our community," said Geoff Tresman, chairman of Punter Southall Financial Management.
Darling announced plans to introduce a single 18 percent rate of CGT in his pre-Budget report last October, up from the 10 percent rate for business assets held for at least two years.
But he recently said that business people selling their businesses could keep the 10 percent rate on profits below one million pounds.
"I am determined that we do as much as possible to encourage entrepreneurship in this country and, in future Budgets, will seek to do more.”
He no doubt seeks to alleviate the credit crunch that has seen many borrowers find it hard to take out even a secured loan.
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