FORMULA ONE CHIEF UNLEASHES TAX FURY
WITH all the hubbub about capital gains tax rates in the run-up to the recent Budget, investors are no stranger to vituperative attacks on their profits, but it does come as a surprise when the abuse comes from someone who’s supposed to be on their own side.
The latest high-profile character to get vocal about the supposed injustice of low CGT rates is Formula One boss Bernie Ecclestone, who singled out private equity firms and their carried interest income for particular criticism in an interview last week.
“It has been diabolical in the past,” Ecclestone stormed. “All they have been doing is transferring shares and paying 10 per cent capital gains. It is still no good at 28 per cent now.”
Instead, the racing chief reckons chancellor George Osborne should have gone ahead and implemented the Lib Dems’ proposals to bring CGT into line with the highest level of income tax, arguing: “Why should that type of business be allowed to run on a different structure than that you run your business on?”
Everyone is entitled to his or her opinion, but perhaps Ecclestone would do well to remember who his friends are. The company which bought up the commercial rights to Formula One in 2006 was, of course, CVC Capital Partners – one of the world’s largest private equity firms.
STRIKING OIL
Much hilarity over the emergence of a board game from the Seventies which seems to bear an uncanny resemblance to oil giant BP’s modern-day troubles. The game, BP Offshore Oil Strike, features four players striving to be the first to make $120m by exploring and constructing oil rigs – and, surprise surprise, also involves penalties for having to clean up enormous oil spills.
(If you’ve got one, The Capitalist’s advice is to put it on eBay pronto, since they’re already worth a small fortune.)
Mind you, not all of the features of the game run parallel to BP’s Gulf of Mexico headache – in the game, the cost of cleaning up an oil slick is just $1m, which pales in comparison to the modern-day price tag of over $3bn.
SPORTING CLASH
New Marks and Spencer chief executive Marc Bolland told analysts and investors yesterday that he has been “really enjoying” his first nine weeks at the helm of the company, but The Capitalist is prepared to bet that he wasn’t feeling that way on Tuesday evening.
Bolland, you see, is both a Dutchman and a football fanatic – which didn’t exactly make for a happy collision of interests on the traditionally busy evening before the company’s first quarter results, when the Netherlands beat Uruguay for a place in the World Cup final.
Still, the executive team must have been well prepared – I hear Bolland did manage to leave the office to watch the match in the end, and was suitably chuffed about the result.
FOND FAREWELL
A sad day today for those in the retail industry, as family, friends and contacts gather at the funeral of Nick Samuel, the former chief executive of Hobbs and finance director of Karen Millen.
Samuel died last week of stomach cancer at the age of 58, and will be sorely missed by all who knew him.
Hobbs chief executive Nicky Dulieu said in a tribute: “He inspired many, not only through his passion for retail but also his more personal achievements, running many marathons in aid of the Retail Trust amongst other charities. All of us at Hobbs are devastated by the sad news of his passing; however, we feel privileged that we had the pleasure of both knowing and working with Nick.”
Samuel’s funeral will be held in Hertfordshire, with the reception afterwards at Brocket Hall.
OO-ER, MISSUS
The Guildhall is more used to receiving luminaries of the business world than fully-fledged film and TV stars, but that’s all set to change today at a Freedom of the City of London ceremony.
Receiving the Freedom award is none other than Barbara Windsor, best known for her role as Peggy Mitchell in Eastenders and, of course, for her performances in the Carry On films. Babs’ Freedom was sponsored by the City of London Corporation’s chief commoner Deputy Robin Sherlock and Alderman Andrew Parmley, who will host a private lunch for the actress and her guests afterwards.
MINDING MANNERS
Spotted gracing a building site outside the Lewisham DLR station earlier this week: an official-looking road sign bearing the words “Osborne apologises for any inconvenience caused”.
“It’s a bit of an understatement for what the new chancellor is about to unleash,” quips my spy, “but at least he has the good manners to get the apology in first…”
WHAT A HIKE
Calling all intrepid hikers: poverty charity CARE and City A.M. have teamed up once again to launch this year’s 3 Peaks Challenge, which will see participants from the City taking on the three highest peaks in Scotland, England and Wales – Ben Nevis, Scafell Pike and Snowdon – in just 24 hours.
The challenge takes place on 11 and 12 September this year and we would love you to sign up – call 020 7934 9470 for more details. The latest team to sign up is from Deloitte, led by senior associate Janice Wong.
STICKY STUFF
An invitation pops into The Capitalist’s inbox for a summit hosted by Mayor Boris Johnson, aimed at tackling the “sticky issue” of chewing gum, of all things.
Apparently, cleaning London’s streets of gum costs as much as £10m per year, or between 50p and £2 per piece.
Who’d have thought it?