Sir Phillip Green Joins Criticism Of Tax Shake-Up

by Carla Johnson, Investors Offshore.com, London

29 October 2007

Owner of the BHS and Arcadia fashion groups, Sir Philip Green, has given his opinion on the recently announced reforms to the UK's capital gains tax (CGT) regime.

After announcing a slower than usual turnover in profits relating to his business empire, Green backed the many others within the UK business community who have objected to the government's plans on taper relief for capital gains tax.

Sir Philip argued that the proposed alterations, which are set to come into force at the start of the next financial year, will greatly affect the earning potential of smaller businesses.

Voicing his concerns in an interview with the Telegraph, Sir Philip stated that the 10% taper relief was historically designed increase the incentives for people to invest their own money.

" I'd have thought that small businesses have a threshold exemption of, say, GBP500,000 to GBP1m. It would protect small investors. There are hundreds of thousands of little businesses – and I don't know the full P&L implications of the changes – that should have been left alone," he observed.

Green went on to suggest that the proposed changes will discourage entrepreneurs from supplying their own capital when starting a business venture, and reduce levels of business expansion in the UK.

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