Inland Revenue 22
17 March 1998
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CAPITAL GAINS OF COMPANIES: FURTHER REVIEW
The Chancellor has today announced that the Government will be
giving further consideration to the tax treatment of capital
gains made by companies. More time will be allowed for
representations to be made on this, in the light of the
proposed reform of capital gains tax for individuals. The
Government's objective remains to have a tax system which
encourages investment, promotes enterprise and is fair to
all.
DETAILS
1. The reform of capital gains tax (CGT) that the Chancellor
announced today applies to individuals, trustees and personal
representatives (see press release Inland Revenue 16).
Companies are not affected by this reform, as they pay
corporation tax on their capital gains.
2. The CGT reform follows wide consultation (see press
release Inland Revenue 16 for more details). Most of the
representations received during the consultation concentrated
on the personal sector. The Government is grateful for those
responses that considered the treatment of companies' gains,
but thinks it appropriate to allow a further period for
comment now that the proposed changes for the personal sector
have been announced.
INLAND REVENUE PRESS OFFICE