Chancellor set to soften CGT blow

The chancellor is expected to heed criticism and announce changes this week to the reforms of capital gains tax revealed in October’s pre-Budget report.

Written by Gavin Hinks

Accountancy Age, 10 Dec 2007

However, according to reports, he is not expected to restore the taper relief system or a lower tax rate on business assets.

According to The Sunday Times Darling Alistair Darling is likely to soften the blow from the changes by introducing new reliefs, including a retirement relief targeting owner-managers wanting to sell up for retirement.

A reinvestment relief has also been considered by the Treasury to make it easier for entrepreneurs to sell assets for investment in another business.

Darling has been under considerable pressure since the pre-Budget report, his first as chancellor, in which he announced that taper relief would be scrapped in April and that CGT on business assets would rise from 10% to 18%.