BVCA warns Tory-Lib Dem government on CGT

The association says it is "concerned" over some text in the coalition government's agreement, published yesterday.

Part of the agreement refers to raising tax-free allowances for those on low and middle incomes by raising additional revenue from taxing non-business capital gains at levels similar to those applied to income.

The BVCA says such a policy may not increase tax revenues, citing a fall in CGT revenue - from £5.3bn to £2.5bn - when the previous Labour government increased the rate of CGT from 10% to 18% in 2007.

It will engage with ministers to ensure the new government does not make a rushed decision on CGT in its promised emergency 50-day Budget, saying it could have a negative impact on UK private equity and venture capital investment.

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