Urgent decision on CGT needed, says CBI

News Article - 04 February 2012
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The chancellor needs to speed up his decision on capital gains tax (CGT), the Confederation of British Industry (CBI) has said.

Alistair Darling announced at a CBI conference last month that he would be making a final decision within three weeks on whether to go ahead with proposals to cut the CGT rate to 18 per cent and abolish taper relief.

Following the announcement in the pre-Budget report in October, a number of business groups - including the CBI - lobbied against the government, claiming the move would deter investment and business growth.

Richard Lambert, director-general of the CBI, said that although the organisation is pleased the government is taking heed of business lobbying; a decision is needed to be made "urgently".

"People need to be able to make decisions about their business - whether to invest, or whether to sell up," he commented. "This uncertainty mustn't be allowed to continue."

The CBI's proposals include a delay of all CGT changes for five years. Following this period, it has suggested that flat rate CGT should be reduced from 18 per cent to ten per cent after four years.

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