Now is the wrong time to raise Capital Gains Tax
Dear Chancellor of the Exchequer,
We recognise that any income we draw from our business should be taxed with income tax but we believe that the risk we took in starting and investing in a UK business, providing jobs and prosperity for others, should be recognised by an appropriate different rate of capital gains tax designed to encourage others to do the same. This will also encourage us to consider launching subsequent business in due course.
If the rate of capital gains tax was taken to the top rate of income tax many of us would seek alternatives to creating a chargeable event subject to tax, which would lead to a loss of revenue to HM Treasury.
We urge you to ensure that the entrepreneurial spirit in this country is recognised and encouraged, by keeping capital gains taxes at an appropriate level to reflect the risk we have taken and the prosperity we have brought to others in creating a new enterprise.
Shalini Khemka (Founder and CEO of E2E)
Lord Leigh of Hurley (Peer and Founder of Cavendish Corporate Finance)