Britain’s entrepreneurial spirit must not fall victim to concerns over private equity managers taking advantage of capital gains relief, the British Chambers of Commerce warns today. Commenting in light of the of the Treasury Committee interim report into private equity, the BCC argues for any measures to clamp down on unfair tax avoidance through capital gains relief to consider the impact on the small business community.BCC Director General David Frost said:
“While the BCC recognizes the advantages private equity managers can take of capital gains taper relief to pay lower rates of tax, we worry that any knee jerk changes could have serious implications for the entrepreneurial culture embedded within our membership.
Through private equity, budding entrepreneurs invest in business, taking on the risk of attempting to run them successfully. The current capital gains system provides incentives for these entrepreneurs to do so, with the vast majority building on these investments to drive growth and create jobs. We urge the Government to ensure that no change is considered which would impair the incentives for these entrepreneurs.”