Tax

Rolls Royce Group boss gets ready for CTG hit

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Tax
Written by Paul Williams   
Wednesday, 19 May 2010

Capital Gains Tax increase will not only hit the rich says one morning newspaper.

 

Rolls Royce Group (LON:RR) boss Sir John Rose has dumped half his shares in the company he heads in anticipation of an increase in Capital Gains Tax.

In an emergency budget the new coalition government is expected to hike CTG from 18% up to rates that could reach 40 and 50% reports the Daily Mail.

In anticipation the chief executive of Rolls-Royce Group has raised £2.66m selling shares in the company.

Sir John Rose has reduced his personal shareholding in Rolls by half, selling 400,000 shares at 597.38p yesterday.

He sold a further 45,191 shares from a nominee account. Alan Wiseman, the former chairman of Robert Wiseman Dairies, also sold a large quantity of shares yesterday, raising £2m, the Times reports.

But will only the rich be hit by CTG increase?


Up to two million workers who save in company share schemes face paying capital gains tax under Treasury plans reports the Daily Mail.

The figure emerged amid a growing mutiny against the proposal to bring the CGT rate of 18 per cent into line with income tax rates that can reach 40 and 50 per cent.

Former Cabinet minister John Redwood revealed that more than 30 MPs are ready to rebel against the Lib Dem proposals.
His case was strengthened when the employee share ownership organisation, ifs ProShare, yesterday wrote to Treasury minister Mark Hoban asking him to protect the two million workers who regularly contribute.

The Liberal Democrats also want capital gains tax to kick in below the current profit threshold of £10,100. There is speculation the figure will be as low as £2,000.

Asda yesterday said 15,600 of its workers will pocket around £47million from a three-year share-save scheme.

And workers who put in the maximum £250 a month would make a profit of £8,000 over three years - potentially exposing them to the tax.

Julie Richardson, of ifs ProShare, said: 'The principle of investing in the company you work for is a sound one.

'We would not like to see this undermined by potentially unintended consequences of CGT changes.'
 



 

 
 
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