Business lobby fails to sway chancellor on CGT

The chancellor Alistair Darling yesterday listened to pleas from business
leaders in a face-to-face meeting with Britain’s four employer groups but
remained unmoved on his capital gains tax policy. However, he might consider
other changes to the tax system to boost enterprise.

Leaders from the four largest business trade bodies said the rise in CGT from
10% to 18% would damage enterprise. They also said businesses feared a lack of
consultation before its announcement revealed a shift in sentiment by the
government away from business and its support for entrepreneurs.

‘Mr Darling said he would be happy to work with the four business groups to
develop measures to stimulate enterprise in the UK, and that he would listen to
the group’s proposals for a way forward on capital gains tax,´ Richard Lambert,
Confederation
of British Industry (CBI) director-general, told
Timesonline.

‘We believe the pre-Budget proposals represent a significant step in the
wrong direction for the UK economy, and we will continue to press the case for
them to be changed. As things stand, they will hold back vital investment in
businesses of all sizes and send out totally the wrong message about the
Government’s attitude to enterprise.’

Further reading:

Darling agrees to capital gains tax talks

Darling rebuffs business call for CGT rethink