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

Former public schoolboy Chuka Umunna told the  ‘Exit From Brexit Dinner’…

“Remainians, Remoaners, I don’t care what the label is, I’m proud. It’s fashionable to label everyone in this room as the liberal metropolitan elite . . . This caricature is promoted by a bunch of former public schoolboys!” 

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Momentum Claims Only a Tiny Fraction of the Hundreds of Thousands it Raised for the Election Were Spent on the Election Momentum Claims Only a Tiny Fraction of the Hundreds of Thousands it Raised for the Election Were Spent on the Election
Labour Delays Kelvin Hopkins Decision Labour Delays Kelvin Hopkins Decision
Who’s In The Final Running To Be New BBC News Director Who’s In The Final Running To Be New BBC News Director
Juncker Facing Criminal Probe After Spy Scandal Juncker Facing Criminal Probe After Spy Scandal
Tom Brake: Media Aren’t Patriotic Enough Tom Brake: Media Aren’t Patriotic Enough
BBC Hypes Gloomy Brexit Report By EU-Funded Think Tank BBC Hypes Gloomy Brexit Report By EU-Funded Think Tank
Brussels Booze-Up Bonanza Brussels Booze-Up Bonanza
Labour Peddle More Animal Sentience Fake News Labour Peddle More Animal Sentience Fake News
Corbyn Launches Labour Muslim Group Headed By “Israel Has No Right to Exist” Activist Corbyn Launches Labour Muslim Group Headed By “Israel Has No Right to Exist” Activist
Clive Lewis Investigation Dropped Clive Lewis Investigation Dropped
Tories Take Poll Lead Tories Take Poll Lead
Cult of Corbyn – Christmas Edition Cult of Corbyn – Christmas Edition
McDonnell’s Socialism (With Diagram) McDonnell’s Socialism (With Diagram)
Labour’s “Easy Movement” Muddle Labour’s “Easy Movement” Muddle
UK Number One Developed Economy For New Business UK Number One Developed Economy For New Business
Guardian and BBC Fail to Mention Kerslake is Labour Adviser Guardian and BBC Fail to Mention Kerslake is Labour Adviser
Max Clifford Dead Max Clifford Dead
Sunday Show Highlights Sunday Show Highlights
Labour Candidate’s $3000-a-Bottle Champagne Labour Candidate’s $3000-a-Bottle Champagne
Khan Gets Brexit-Bashing Corbynistas To Write His ‘Independent’ Impact Papers Khan Gets Brexit-Bashing Corbynistas To Write His ‘Independent’ Impact Papers