Capital Gain Tax

I was rather shocked to hear what the Chancellor of the UK has done. He has actually made a ruling that there will be a CGT of 18% on property, shares or anything that is relevant to be tax. That is a heavy tax though. This is because with the 18% tax, people might be discouraged to start business and if that were to be the trend, how would the economy grow? We need new businesses and consumers to buy products so that the government will be able to get back what companies owed through tax. That is just the simple equation. Without that, how would it happen? I mean, people who wants to start business will have to think twice before doing so due to the 18% tax.

One might think that 18% is not too much but think about it. If you were to sell your business for £100,000, £18,000 from that sum will go to the government as one form of tax. What do you think then? £18,000 and it is not £18, ok?