Businesses won’t come to Britain if taxes rise

sir – If the Chancellor removes entrepreneurs’ relief and increases capital gains tax on the sale of business assets (Business, November 19), he will kill off overnight the UK as a destination for start-up businesses and innovation.

History will judge this second destruction of the economy very badly. Richard Vass

Bury St Edmunds, Suffolk

sir – What this country needs is tax simplification, not more tinkering at the edges. Capital gains tax is a voluntary tax – it is only paid when someone disposes of assets that incur a gain – and any increase in the rate will be matched by a reduction in receipts.

The only realistic way to raise more tax is to extend the council tax bands. Christopher Watkins

Brentwood, Essex sir – I hold all my money in my company. It is my pension. I employ six people. My dilemma is: do I continue trading to try and increase this pot, or wind up the company quickly to avoid a much higher capital gains tax rate?

I like to think I’m a good citizen and I pay my dues, but obviously I don’t want to work hard over the next few years just to pay a higher tax bill when I retire. I’m sure that there are many other businesses in this situation. Just talking about a raid on capital gains tax will cause many businesses to close prematurely, and the loss of all the jobs associated with them.

It would cause a considerable drop in the receipt of all other taxes (VAT, national insurance, income tax). The Government’s failure to grasp how businesses work is breathtaking. Peter Wiltshire

Binfield, Berkshire