Doctors express tax concerns

The British Medical Association (BMA) has written a letter to chancellor Alistair Darling responding to recent announcements on capital gains tax (CGT) made in the pre-Budget report.

Taper relief on CGT will no longer apply from April 2008 - a move the BMA describes as "extremely unfair".

Under existing rules, taper relief ensures that sales of assets two or more years old are taxed at ten per cent but this will change to a flat rate of 18 per cent next spring.

Dr Hamish Meldrum, chairman of the BMA Council, said: "Not only is this change extremely unfair on GPs, who over the years have invested heavily in their practices to the benefit of patients, in worst case scenarios it could make it harder for patients to access services."

The new process could have a negative impact on healthcare altogether, he added.

October's pre-Budget report also made clear that the finance bill 2008 will include legislation to ensure unauthorised payment tax charges will apply to tax-relieved pension savings which are diverted into inheritance using scheme pensions and lifetime annuities.

GPs may wish to seek specialist financial advice from Wesleyan Medical Sickness.

Source: BMA

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