House prices dampened by the election May 31, 2010 UNCERTAINTY over the outcome of the general election put a dampener on house prices in May. May’s monthly house price growth held steady at April’s three-month low of 0.2 per cent, property data company Hometrack said yesterday. Increases in sales, new buyers and new properties were all the weakest since January, when unusually icy weather [...]
SPREAD BET GURU May 31, 2010 MARKET STRATEGIST josh@cityindex.com Q. Dear Josh, what does a hike in capital gains tax mean for spread betters? A. We don’t yet know what will be announced in the emergency budget on 22 June, but the good news is that even if there is a hike, this should make no difference to spread betters. Suggestions [...]
WHY CAM MUST AXE THE CAP GAINS HIKE May 27, 2010 CITY A.M. today launches a campaign against plans to hike capital gains tax (CGT), calling on David Cameron to rethink proposals that would clobber private investors. Yesterday, senior City figures – including private equity guru Jon Moulton, serial entrepreneur Luke Johnson and Tullett Prebon boss Terry Smith – became the first to support our campaign. [...]
Coalition must listen to City on CGT May 27, 2010 IT is not often that a major City institution is willing to go on the record with its opposition to a key government policy – usually, the big firms hide behind off-the-record briefings or industry lobby groups. So kudos to Fidelity, the fund manager, for yesterday demolishing so eloquently the coalition government’s plan to hammer [...]
Tax hikes and uncertainty to be bad news May 27, 2010 THE new government has wasted no time in swinging the axe on public spending. This week £6bn of cuts were announced. Business organisations are overwhelmingly in favour of the cuts, but what does this mean for entrepreneurs and start-up companies? Everything from government contracts to Regional Development Agencies (RDAs), which provide grants and funding to [...]
Capital gains tax hike a very bad idea May 26, 2010 IT is time for the new government to pause for thought on capital gains tax. John Redwood, the former Tory minister, is right on the money in his article for this newspaper today (see p16): a massive increase in capital gains tax to 40 or even 50 per cent, as envisaged by the government, would [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 26, 2010 FINANCIAL TIMES APPLE, HP AND DELL INVESTIGATE FOXCONN AFTER SPATE OF SUICIDES Apple, Dell and HP, three of the world’s largest IT companies, said yesterday they were investigating working conditions at Foxconn after a series of suicides at the huge factory in southern China where Foxconn makes electronic goods. Nine workers at Foxconn’s Shenzhen plant, [...]
Tories facing revolt over CGT increase May 26, 2010 THE GOVERNMENT is facing a damaging revolt from angry Tory backbenchers over plans to hike capital gains tax (CGT). Simmering dissent among Conservative MPs came to a head yesterday, when former cabinet minister John Redwood wrote an open letter to the Treasury saying it “would send a strange signal if a Lib-Con government decided to [...]
Higher capital gains rates hurt the economy May 26, 2010 THE government has said it wishes to assist a substantial private sector led revival. It needs a policy which allows reasonable freedom for people to invest, encourages those who are responsible and who make provision for their families and their futures, and is fair. I suggest that gains of under one year are taxed as [...]
CITY VIEWS: SHOULD THE GOVERNMENT RAISE CAPITAL GAINS TAX? May 26, 2010 BEN MOHAMOODALLY | ACCENTURE “The government could increase capital gains tax, which would help the revenue stream. But CGT is an awful tax and stops the middle classes from getting rich.” GRAHAM MCCULLEY | CAPITAL ASSET MANAGEMENT “Capital gains tax is currently low, so it is likely to increase. The government could raise taxes across [...]