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There are fears among SMEs that one of Gordon Browns first moves as prime minister will be to reduce the current allowance for business start-ups in terms of capital gains tax (CGT) relief.
It is thought that such a move would prompt many small businesses to sell up and could slow company formation.
The issue in question is taper relief, which permits those owning shares in their own company to pay just ten per cent CGT rather than the standard 40 per cent.
It was hoped such a strategy would encourage entrepreneurship, but it transpired that large corporations took advantage of the regime.
Browns low rate of corporation tax was also withdrawn for similar reasons.
Stephen Alambritis, of the Federation of Small Business, is quoted by told ThisIsMoney as saying: "If the consultation process takes a long time, entrepreneurs will start to sell up.
"Entrepreneurs need certainty and finality in their tax affairs and if that is no longer a feature of the tax system then selling up and going off is another way of achieving that certainty and finality."
The tax planning process has already begun in case SMEs fears are realised.
Mike Warburton, tax partner at grant Thornton, said: "We are already structuring the affairs of family firms in such a way as to shield them from possible changes to the CGT regime."
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