TaxAssist Accountants - Taxpayers need more time for CGT

Taxpayers 'need more time' for CGT

Date: 29th January 2008

An accountancy body has accused the government of failing to allow the business community enough time to adapt to the capital gains tax (CGT) reform.

The Institute of Charted Accountants in Scotland (ICAS) said that taxpayers require a "transitional period" of at least 90 days to get their affairs in order following tax changes, although there are now less than ten weeks until the new CGT system comes into force.

Although stating that the body "welcomes any move which simplifies taxation" in principle, the ICAS suggested that chancellor Alistair Darling could be violating European legislation by giving businesses such short notice.

ICAS director of taxation Derek Allen said: "It is wrong to tax inflationary gains and it would be contrary to European law to deny taxpayers sufficient transitional time to rearrange their affairs before the new legislation is enacted.

"It would be irresponsible to enact complex changes and not give a sufficient transitional period for taxpayers to consider the implications."

The ICAS received its royal charter in 1854 and professes to be the first professional body of accountants in the world.

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