PricewaterhouseCoopers has delivered a mixed reaction to Alistair Darling's pre-Budget report.

The firm was especially disappointed that taxation of companies' foreign profits had not been addressed.

Discussions began in June this year, with scores of businesses, including PwC, formally responding in mid-September.

Peter Cussons, tax partner at PwC, said: 'The absence of any announcement on the subject by the government today leaves international businesses in the UK unsure as to the government's intentions. We believe that the current cross-border taxation regime is unnecessarily complex, and could be considered anti-competitive compared with other countries' tax regimes.'

The capital gains clampdown would herald significant change for a wide range of commerce, especially private equity and property companies.

Kevin Nicholson, tax partner and UK head of entrepreneurs and private companies, said: 'This will be a bitter pill for those that had built up their business with the expectation of selling out with only a 10% tax charge. Conversely those who held non-business assets such as many properties will see their tax rate fall from 24% to 18%. Similarly tax payers who would have faced the highest 40% tax charge on assets like buy-to-let portfolios and quoted share portfolios will be pleased by these new measures.'

Darling's shift on IHT was welcomed by the Big Four firm. The chancellor raised the inheritance tax threshold to £600,000 and also announced a shift in IHT legislation which will pave the way for people to transfer any unused IHT nil-rate band allowance on a person’s death to the estate of the surviving spouse or civil partner.

Clive Mackintosh tax partner and head of private clients said: 'This will reduce the need for complex wills and reduce inheritance tax on many family homes.'