Submitted by Duncan Cheatle Entrepreneurs take tax petition to Downing St

13th December 2007 / The Telegraph

(Copyright The Daily Telegraph Ltd. 2007. All rights reserved.)

Some of Britain’s most promising young entrepreneurs have presented a 16,600-name petition to Downing Street calling on the Government to scrap its plans to increase capital gains tax.

Duncan Cheatle, founder of networking firm The Supper Club, handed in the petition ahead of an announcement of concessions by the Chancellor, now expected on Monday.

The petition against the 80pc rise in capital gains tax (CGT) on business assets drew support from across the business community and is backed by all the main employers’ bodies and The Daily Telegraph.

Alistair Darling has said he will clarify his plans before Parliament rises on Tuesday. He is understood to be determined to introduce his new flat rate of 18pc on all assets, despite the protests.

But he has acknowledged that some concessions should be made to reduce the impact of the tax rise.

Mr Cheatle said the Chancellor would have to do more than that to placate entrepreneurs: “I would hope that the Chancellor will look at some kind of extension to consult properly and re-evaluate his plans.”

Mr Cheatle called support for the petition the “tip of the iceberg” in terms of the number of people who would be hit by the tax changes, due to take effect on April 5.

“There’s a real sense of being wronged,” he said. “It will affect the very people who are creating jobs, wealth and paying a lot of other taxes.”

Mr Cheatle was joined at Downing Street by four other entrepreneurs: William Reeve, co-founder of the film download firm, LoveFilm.com; Sarah McVittie, co-founder of mobile information service Texperts; Duncan Grossart, of international photo agency Image Source; and Charlie Gordon-Lennox, co-founder of home-sitting service The Keyholding Company.

Ms McVittie said it was “vital” that the Chancellor made changes.

“The flat rate does nothing to encourage people to reinvest back into new businesses rather than property, where you get the biggest returns,” she said.

The Federation of Small Businesses said the main business groups would continue their joint campaign if the Chancellor did not make far-reaching changes.

See the story at The Daily Telegraph.