John Redwood's letter to the treasury on Capital Gains Tax and it makes a lot of sense, as per usual from John Redwood. His basic idea is that we up the rate for CGT, but not for investments then cut that for investments of a year or more.
However, when it comes to shareholding I don't think this makes the slightest bit of difference to FTSE companies. Whether you hold Aviva for a year or more does not help Aviva in our wild markets. They are far more dependent on bank finance which is another issue altogether. Similarly speculative punts on AIM shares are not made the better for sealing them in for the long-term. In fact, selling on bad news is crucial to preserving your wealth in this way.
Also, Vince Cable, wrong on so many issues and not long for the Government I imagine, has a point about people using Capital gains to shelter from income tax. All in all, it should be equalised, but indexed so that you don't pay tax on gains made only due to inflation.
My biggest fear is that the Government will shy from large cuts and instead content itself with raising taxes. I can see £25-50 billion of tax rises and then another similar amount of cuts to achieve the deficit target.
Back to John Redwood, in the above environment you can forget an entrepreneurial led expansion of the UK Economy with that weight of tax burden on this.