Lord Jones, the trade and investment minister, was the first minister to break government ranks yesterday when he warned chancellor Alistair Darling would face ‘unintended consequences’ of his capital gains tax (CGT) reforms unless he offered significant concessions to business.
Other ministers have voiced concern in private but insisted in public they support the pre-budget report decision to scrap taper relief and the 10% CGT rate, Financial Times reports.
Lord Jones backed the business call for substantive changes, saying he hoped ‘whatever is announced – and I’ve no idea what’s going to be announced – I hope they’ve listened to the things that need to be consulted on’.
The minister suggested the Treasury had failed to appreciate the full impact of the proposed move to a single 18% CGT rate on entrepreneurs.
Further reading:
Government airs CGT concessions
Comments