Trade minister first to break ranks over CGT

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

CGT fears lead Sizer to £7.8m share sale

the full story in Financial Times

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