Finance and accounting expert claims cap gains relief unexpected

One of Britain's leading accounting advisory groups has said with another Budget statement likely later in the year, many of Alistair Darling's proposals might not become law.

London-based finance and accounting advisor Vantis responded to the Chancellor's speech by suggesting that "not much" was done on major tax changes.

However, Chris Maddock, tax director of Vantis Group, did say that he was surprised at the doubling of entrepreneur's relief on capital gains tax as many fully expected a freeze or increase on the previous 10 per cent rate rather than the reductions of the first £2 million in gains for those who qualify.

He added: "Freezing of Inheritance Tax thresholds, personal allowances and Income Tax bands will provide inflationary tax increases without the need to change the rate itself."

Mr Maddock did remark that suggestions that this was not a 'real' budget may be "well founded" and the company said it expected "another summary in the not too distant future".

Updated: 26 March 2010.
Categories: finance-and-accounting, market-and-industry-news.