SUDDENLY, Alistair Darling seems to have become a convert to flat taxes. His sweeping reconstruction of capital gains tax (CGT) means that nearly all the big UK taxes are pretty well flat - virtually everyone paying the same rate across the board – from VAT to excise duties and inheritance tax (IHT) – with the notable exception of income tax.

Taxes can either be simple or fair. In cracking down on fat cats, Darling’s radical CGT is going to spark an unprecedented burst of activity as millions of people adjust their positions.

For most investors, the new 18% rate will be less than they would have paid on orthodox stock-market securities. However, the allure of buying AIM shares will be sharply reduced, as will putting money into small businesses.

Darling’s sudden U-turn on Gordon Brown’s longstanding commitment to risk-taking and the enterprise culture will make it less attractive to back your niece or nephew’s promising new venture, and you may prefer to stick to the day job rather than strike out on your own.

And the tax position of many established family businesses will have to be rethought between now and April, when the new regime takes effect. Some, sadly, will have to be sold after being lovingly husbanded for generations.

The ludicrous anomaly is that if you have held such assets as shares, second homes and buy-to-let properties directly you will pay less tax, but if they were in a small-company wrapper you will pay more. You end up paying the same either way, but those held in a small company that were just about worth keeping may not now make financial sense.

There are so many unintended consequences to Darling’s sweeping CGT change that I can’t help feeling his civil servants have not thought it through. They have scrambled to be seen to be doing something about the private-equity fat cats – who, as usual, will continue finding legitimate ways to avoid tax – while causing unnecessary disruption to thousands of innocent families.

Darling’s IHT changes remove the necessity to avoid the tax by legalistic jiggery-pokery. Full marks to him for that.

But as Sunday Times Money pointed out last week, there are plenty of simple steps you can take to escape IHT, such as spending your money or giving it away.

The revised IHT reverses years of Brown spreading the tax by stealth. They will give some widows and widowers a tax windfall, and split unhappy couples who have been sticking together for tax reasons. Trusts will still have a role in ringfencing money, and do write a will.

But the really tantalising question is whether Darling will march into the history books and introduce a flat-rate income tax. The Baltic state of Estonia was the first, in 1994, but since then the idea has largely become a captive of the political right. Don’t let that stop you, Alistair.

Into Africa

TOMORROW week, New Star Asset Management launches a Heart of Africa fund, which I believe could go a long way to kick-starting the world’s last great underexploited continent. This is by no means the first Africa fund, but it is the first by one of the UK’s mainstream fund managers.

But it’s definitely not an investment area for novices. You must have all the basic elements of your portfolio in place before even thinking about taking your chances in Africa.

The traditional way of confining a risky fund to the cognoscenti is to demand a very high minimum investment, in some cases as much as £100,000. New Star has set the bar high, but not that high.

You have to invest at least £12,500, which many will find steep, but the impact can be reduced by investing through a fund of funds or investment club.

Daringly, the new fund will ignore South Africa, easily the Dark Continent’s most developed economy. This is throwing the dice in a big way, looking for hidden gems in some of the riskiest commercial environments on the planet.

However, I am sure other big-name fund managers will be forced to follow New Star. That could help make Africa a respectable place to invest, which could in turn tempt more western entrepreneurs to start ventures there.

This self-reinforcing boost to confidence is what is needed to overcome misgivings and take advantage of Africa’s minerals and commodities, as well as its growing tourist industry.

It has long been possible to buy shares in London stock-market companies operating in Africa. Lonrho is a diverse business with a famous history, and there are dozens of mining ventures ranging from giants to minnows. But that approach is for investors with advisers or an appetite for plenty of homework.

No one should put more than 5% of their portfolio into the New Star fund, so individuals should not touch it unless they have at least £250,000 or can share the risk. There will be shocks aplenty, but Africa’s potential is boundless.

Postal penalties

THE Royal Mail strikes are causing chaos with credit-card payments and, although banks say they will be flexible, many of us will be hit by interest charges we didn’t expect.

Best answer is to go online to pay; failing that, phone your bank’s customer-service number – I know, it’ll be hell, but this is an emergency. And if you can’t discover exactly how much you owe, err on the side of overpaying.