Trade minister speaks out over CGT

News Article - 28 December 2007
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The chancellor needs to amend his capital gains tax (CGT) proposals due to the "unintended consequences" which will occur as a result, according to the trade and investment minister Lord Jones.

Lord Jones, former director-general of the Confederation of British Industry (CBI), explained that many businesses felt the proposed flat rate of 18 per cent and the abolition of taper relief will stifle and discourage entrepreneurship.

Alistair Darling announced the planned changes in October but has delayed his final decision to mid-January following protests from the business world.

The CBI lobbied for a delay of five years for all CGT changes and that the flat rate be reduced from 18 per cent to ten per cent after four years.

According to Lord Jones, the industry was "shocked" at the chancellor's proposals as they were so sudden.

"I hope that 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," he said.

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