Treasury Select Committee consider Darling's report

7:44am Monday 26th November 2007

ifs ProShare, the collective voice for the employee share ownership industry, has welcomed today's Treasury Select Committee report into the Alistair Darling's first Pre-Budget Report.

The Treasury Select Committee report highlights the fact employee share owners will be affected by the Governments proposed Capital Gains Tax changes and calls on the Treasury to set out how it intends to mitigate the negative effects such changes are likely to cause.

The Committee states that it appreciates the benefits that tax simplification can bring and its desirability for all taxpayers, particularly small businesses and entrepreneurs, but also concludes that the reform of the capital gains tax regime announced in the 2007 Pre-Budget Report will affect small employee shareholders and could affect longer-term investment.

John McFall, Chairman of the Treasury Select Committee, said: "Tax simplification is a desirable objective, but the reforms of capital gains tax will have an immediate impact on many individuals and businesses that have sought to plan ahead.

"There is a window of opportunity for meaningful consultation between now and the 2008 Budget, and the Treasury needs to establish clearly the terms for such consultation."

Fiona Downes, head of employee share ownership at ifs ProShare, said: "ifs ProShare has stated from the outset that only a minority of employee share holders are likely to be affected by these changes but that this minority is significant.

"Our subsequent research confirmed that approximately 16 per cent of those in an SAYE sharesave scheme could be affected, which amounts to over 270,000 people.

"Clearly the Government needs to mitigate the effects of these changes for these hard working employees and we are therefore pleased that the Committee has called on the Government to act."

Further information from www.ifsproshare.org

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