Industry leaders to argue over CGT changes

Proposed changes to capital gains tax are to be the focus of discussion between the Chancellor and major British business groups.

Alistair Darling is to meet with representatives from the CBI the Institute of Directors the British Chambers of Commerce and the Federation of Small Businesses after the organisations sent an open letter to Mr Darling asking him to rethink plans to withdraw taper relief.

The policy reversal announced in the Pre-Budget Report earlier this month was described by the four industry bodies as coming like 'a bolt out of the blue' and criticised for 'discouraging longer-term investment and risk-taking'. It will 'undermine enterprise' and have an adverse affect on small business.

The Treasury however sees the proposed changes as a measure to ensure a fairer tax structure for the private equity sector with an 18% flat rate for CGT on profits...