The Chancellor, John Healey, is drawing up plans to charge income tax rather than capital gains tax when family businesses are handed to the next generation, the Telegraph reported on Sunday 18 October. The Treasury has not confirmed the plan ahead of tomorrow's Budget.
City AM says the change could almost double the tax bill. It puts capital gains tax for higher-rate taxpayers at 24%, against an income tax rate of 45%. On City AM's own figures the claim holds up, as 45% is a little under twice 24%.
According to City AM, the Telegraph says the change would be presented as an anti-avoidance measure rather than a raid.
The Treasury would not comment on speculation. A Treasury spokesperson told Reuters: "As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events".
A Reuters factbox published on 27 October still lists the plan as a Telegraph report.