The lack of a much-hyped rise in capital gains tax was a good starting point. The tax remains at the 18pc rate set by Mr Darling in his first pre-Budget statement two years ago when he scrapped the long-standing 10pc rate and in doing so suffered the wrath of the entrepreneurial community. While the rate remained the same, Mr Darling also resisted the temptation to make his concession to serial entrepreneurs more generous. The so-called Entrepreneurs' Relief of a 10pc rate on the first £1m in gains made during someone's lifetime was a sop to the small business lobby. Shopkeepers planning to use the sale of their businesses as their pension were none too pleased to suddenly be hit by such a hike in tax. The Chancellor buckled; but the relief does little for those aspiring to build much more than a small venture.
Fledgling green technology businesses may have been more cheered by Mr Darling's decision to use the might of the tax system to encourage more consumers and businesses to buy electric vehicles. Cars have been made exempt from the company car tax from next April, making them much more attractive to company bosses and other higher-rate taxpayers.
Original Article: Government-backed venture capital fund finally sees the light of day - Telegraph
