Ayrshire Chartered Accountants Sinclair Scott attack Alistair Darling U-turn

Ayrshire, Scotland, 18 October 2007—Ayrshire Chartered Accountants and Chartered Tax Advisers, Sinclair Scott have attacked the changes to capital gains tax announced by Alistair Darling in his first Pre-Budget Report.

With the introduction of a flat capital gains tax rate of 18% and the removal of indexation, many business owners will face an increase in their capital gains tax rate from 10% to 18%.

Andrew Sinclair, partner in Sinclair Scott has commented: “It is incredible that one of the most business-friendly aspects of the UK tax system has been reversed by the new Chancellor in his first major speech. It is particularly difficult to understand, as business asset taper relief was heralded as a way of encouraging entrepreneurs when it was introduced by the current Prime Minster Gordon Brown.”

As the change is not effective until after 5 April 2008, there is a period prior to this date when action can be taken to qualify for the 10% tax rate.

Sinclair Scott are encouraging all business owners and owners of properties used for trading purposes to consider what action they can take to qualify for the 10% rate. They have produced a number of action points:-

* Consider disposing of business interest or property let for trading purposes prior to 5 April 2008.
* Bring forward any relevant disposals which are planned for after 5 April 2008.
* Consider incorporating a sole trader or partnership business and/or transferring assets to a limited company prior to 5 April 2008.
* Making gifts to children or other family members to generate a capital gains tax disposal prior to 5 April 2008.

Andrew Sinclair explained that it is imperative to review all your assets to identify if any action can be taken within this window of opportunity.

As a footnote, whilst business owners may be hit with increased capital gains tax, many investors (including second property owners) will have a lower capital gains tax rate at 18%.

Whilst there are winners and losers, particular importance will be placed in deciding whether assets should be disposed of prior to or after 5 April 2008



Fame Publicity Services for worldwide news distribution and search engine optimization.

Contact:

Andrew Sinclair
Sinclair Scott
3 Wellington Square
Ayr KA7 1EN

Tel: 01292 288999
Fax: 01292 272150
Mobile: 07884 315275
E-mail: ca@sinclairscott.com
Web: www.sinclairscott.com