The Eds' Southern Cross Secret

Red Ed saw another bandwagon he could jump on at his press conference on Monday. He lashed out at “financiers who creamed off millions”, blaming them for the near collapse of the UK’s largest care-home provider Southern Cross, which is laying of thee thousand staff as it cannot afford its £250 million rent bill. American investors Blackstone made a £134.5m profit from their sale of the company in 2007. As they held their shares for two years after floating the business, they only had to pay Capital Gains Tax on 25% of this profit, which worked out at £33.6m. If they had paid CGT at the usual 40% rate on 100% of the gain, they would have had a tax bill of £53.8m – £40.4m higher than they paid. But who was it that enabled them to “cream off millions”?


In April 1998, the government introduced taper relief for business assets, whereby the CGT rate was charged on only a proportion of the gain made from the disposal of an asset. In 2002, the Treasury increased this taper. Rather than a taper of 50% for a business asset held for two complete years, it was reduced to 25%. And who was running the show while these changes were thought up and implemented? 

Please step forward Treasury Special Advisers Edward Miliband (1997 -2002) and Edward Balls (1997 – 2004).




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

President Trump on May’s Brexit deal:

“I would say that Brexit is Brexit. … The people voted to break it up. So I would imagine that’s what they’ll do. But maybe they’ll take a different route, I’m not sure that’s what they voted for.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Paul Mason Reported to Police Paul Mason Reported to Police
Etonian Free Cabinet Etonian Free Cabinet
Tory MP Puts Letter In to Brady Tory MP Puts Letter In to Brady
Lord Carrington Lord Carrington
Poll: May’s Deal or No Deal? Poll: May’s Deal or No Deal?
Labour’s Chequers Survival Kit Labour’s Chequers Survival Kit
Whips’ Patsies in Full Whips’ Patsies in Full
Tories Will Lose Votes if They Cross Brexit Red Lines Tories Will Lose Votes if They Cross Brexit Red Lines
Remain Used Same Spending Tactics as Leave But Far Worse Remain Used Same Spending Tactics as Leave But Far Worse
Paul Mason’s Coming Home to England Paul Mason’s Coming Home to England
Penny’s Sign Language at Despatch Box Penny’s Sign Language at Despatch Box
Lefties Disappointed as England Win Lefties Disappointed as England Win
SNP Plot to Ruin England Match SNP Plot to Ruin England Match
MEPs Vote to Reject Transparency MEPs Vote to Reject Transparency
Labour Reinstate Jared Labour Reinstate Jared
Hancock Jumps on a Wall Hancock Jumps on a Wall
PM Runners and Riders PM Runners and Riders
Cabinet Brexiters Silent as Robbins Rubs Out Red Lines Cabinet Brexiters Silent as Robbins Rubs Out Red Lines
Cadwalladr and Collins to Share Platform at Byline Festival Cadwalladr and Collins to Share Platform at Byline Festival