Tax is the biggest concern for SMEs in the UK, according to a new survey.

Research by insurer Hiscox had found that business taxation topped the list of concerns for SMEs, driven by the impending changes to the capital gains tax regime.

'Obviously CGT is a hot topic for SME owners right now. The ending of taper relief and the increase in CGT is a potential hindrance to entrepreneurial endeavour,' said Hiscox manager John Heaney.

Pressure to increase sales has shot from fifth to second place in the poll, while the effect of the economy on business was a worry for three-quarters of the SMEs polled.

Cashflow concerns have also increased and are now ranked the sixth top issue, compared with ninth place in 2006, according to the Hiscox 2007 Risk Barometer.

Linked to cashflow, clients refusing to pay also featured in the top ten concerns for the first time.

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