PRESS DIGEST - Financial Times - Aug 4

COMPANY SELLERS FACE 'CATCH 22' BILL AS DOWNTURN HITS TAX

A legal loophole used by many entrepreneurs seeking to reduce their capital gains tax bills when selling their companies will be affected by the economic downturn.

Following the government's announcement of an increase in the capital gains tax rate from 10 to 18 percent in April, accountants for some companies found a loophole which allowed them to freeze the old 10 percent rate before a sale of the company was completed.

However, the state of the economy has made it more difficult for companies to find buyers, increasing the probability that they will be left facing a Catch 22 situation in which they have to pay the tax without the company yet being sold.

TORIES URGE REVIEW INTO PENSION FUND 'SIPHONING'

The Conservative Party has accused the government of 'sucking' billions of pounds from the Mineworkers' Pension Scheme and the British Coal Staff Superannuation scheme, and called for an inquiry into the matter.