Tories say CGT explanations are unravelling

The government's various explanations for scrapping taper relief on CGT are unravelling the Tories said yesterday.

The claim followed comments by business secretary John Hutton who said scrapping taper relief, which will raise £900m, was done to fund an increase in the IHT threshold.

Hutton's remarks ran contrary to those made by chancellor Alistair Darling, who said the move was made to simplify the system, as well as the explanation made by Gordon Brown who said private equity was the reason for the reform.

'These changes had nothing to do with improving the environment for business and simplifying the tax system, and everything to do with trying to find extra money,' said shadow chancellor George Osborne.

Further reading:

CBI: CGT changes killing business spirit

MPs rap Darling over CGT reform