Gordon Brown has claimed that his government has cut capital gains tax over the 10 years it has been in power, as Tory leader David Cameron maintained the pressure on the government over its CGT changes.

'When we came to power it was 40%. Now, under the Chancellor’s proposals, it is 18%,' Brown said in answer to Cameron's questions yesterday.

The government plans to scrap the 40% rate and have one single 18% rate, without the network of reliefs and allowances that went with the 40% rate.

Cameron pressed Brown to give more certainty to business on what would happen with the capital gains regime.

'It is only three months before the start of the financial year. Businesses throughout the country want to know the capital gains tax rate that they will face in April. Will the Chancellor go ahead with his 80% increase in capital gains tax rates, or are we set for another humiliating U-turn?,' Cameron asked.

Gordon Brown said the announcements would come shortly.

'The chancellor has agreed to consult on its implementation and will report back to the House of Commons in due course. Why did the Conservatives have 18 years of not reducing the rate of capital gains tax?,' he said.

Further Reading:

Hansard transcript of the exchange