CGT delay causing "enormous damage"

News Article - 17 January 2008
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"The clock is ticking," the government was told last night in relation to capital gains tax (CGT) proposals.

Chancellor Alistair Darling announced in October that there were plans to remove taper relief and apply a flat rate of 18 per cent for all assets.

However, following intense business lobbying, the government is expected to make concessions and Mr Darling had said he would announce his final decision by the second week of this year.

Richard Lambert, director-general of the Confederation of British Industry (CBI), explained to the chancellor that the delay on a final decision was causing confusion to businesses.

Mr Lambert said: "Nobody has a clue what's going on and the problem is that this is a major part of the tax code [and] has a big effect on people's lives."

Postponing the decision further was causing "enormous damage" to the government's reputation, he added.

The CBI had previously proposed that any intended changes to CGT be delayed for the next five years.

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