SFA calls for new 10% capital gains tax for entrepreneurs

The chairman of the Small Firms Association, AJ Noonan, has called on the Government to ensure that risk-takers and workers are supported in Budget 2015 to deliver much needed growth to the Irish economy.

Mr Noonan said the Government should allow funds to be released into business through the introduction of a 10 per cent capital gains tax for entrepreneurs selling businesses, equal to the UK regime.

“History shows that this will boost business activity levels, whilst increasing the net tax take for the Government overall,” he said.

Speaking at the SFA annual lunch in Dublin today, Mr Noonan also called for a change in pension policy to allow people to invest their pensions in small businesses, along the lines of the UK model.

“Small business cannot see an opportunity to get access to much needed capital and even if they are successful in getting loan capital, they are being asked to give very significant personal guarantees to financial institutions, even where adequate share capital exists”.

President Michael D Higgins told the event that small firms are crucial to the achievement of sustainable economic prosperity.

“When discussing the Irish economy, public commentary, perhaps understandably, tends to place great emphasis on Foreign Direct Investment by multinational companies. This sometimes is at the cost of not giving sufficient recognition to the vital functions of small and medium enterprises,” he said.