Darling seen to soften stance on CGT changes

Chancellor Alistair Darling was seen to soften his stance on capital gains tax changes (CGT) in the face of mounting criticism from business when he appeared before the Treasury select committee yesterday.

Although he was determined to press ahead with his a single 18% CGT rate in April, he said he was happy to work with business groups to explore ways of easing the blow with other measures to help businesses, particularly entrepreneurs and business owners facing retirement.

That improvement could take the form of ‘marginal’ changes to the new CGT regime – such as relief on business assets – or a broader tax break to help business more generally, government insiders told Financial Times.

Timesonline reported that, when asked by Michael Fallon, treasury spokesman, if he was ruling out a rethink in response to business concerns, Darling said: ‘They have raised a number of issues. I said of course I will work with them there.’ Fallon retorted: ‘So that’s no . . .’

Further reading:

ICAEW calls for ‘more thought’ on CGT changes

Darling 'did not rush through' PBR tax changes