The government faced further lobbying against its changes to CGT rules yesterday by the business community.
The Institute of Directors called for a reduction in the 18% single rate of CGT, and for the retention of indexation reliefs up to 1998 – which would help those selling businesses on retirement.
'We hope that the government will look at these proposals seriously,' said Miles Templeman, director general of the IoD.
'The important thing is for the government to heed the voices of the many business people who have protested, and to make some significant changes. Otherwise, the government’s pro-enterprise credentials will be seriously tarnished.'
Retirement relief could also be introduced, but the current discussed rate of 10% tax on the first £100,000 was too limited, the IoD added.
Reinvestment in shares that met the conditions of the Enterprise Investment Scheme could be broadened to offer relief in all unquoted shares, which would allow entrepreneurs to build a successful business and then move to another one.
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