CBI delivers stinging attack on Darling over CGT
CBI calls CGT changes a 'blunt instrument' that could hit small business and the economy in general
The CBI has warned the chancellor that the economy, and hundreds of thousands
of small businesses, were at risk following changes to capital gains tax
announced in the pre-Budget report.
In an
open
letter to chancellor Alistair Darling, CBI director-general Richard
Lambert said the organisation had ‘deep concerns’ about pans to introduce a
flat-rate capital gains tax regime.
‘By removing taper relief you have deployed an extremely blunt instrument
that will deeply damage a much wider community, and in so doing, risk the
medium-term health of our economy,’ the letter stated.
Lambert added that the estimated increase in tax take from the changes,
£900m, came at a time when companies were considering whether to continue to
base themselves in the UK, and the government’s own forecasts point to a more
uncertain economic climate.
Further reading:
Employee share schemes in CGT rate
hike