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The proposed shake-up of capital gains tax remained a vital issue this week, with a number of notable figures commenting on the issue.
Most notably, trade and industry secretary Lord Jones claimed that many companies believe the Treasury's plan to be 'a terrible thing'.
The former director-general of the Confederation of British Industry told a meeting of business people that the plan to replace taper relief with a flat rate of 18% was a reaction to a tax system that was 'wrong and unfair'. But he added that the new proposal has upset 'medium-sized businesses, in particular'.
Lord Brown promised to relay firms' questions and concerns to the Chancellor, who has conceded that there are worries about the planned changes. He told a Commons Treasury committee: “I understand that people facing retirement have a particular concern”.
Tax expert Francesca Lagerberg, chairperson of the technical committee of the ICAEW, also acknowledged this issue, and said that entrepreneurial spirit should be rewarded among veteran business people who have built up assets and are approaching the end of their careers.
'I would like to see a return to tax relief for retirement,' she remarked.
Commenting on the CGT changes as a whole, Ms Lagerberg said: 'I suspect there is still room for manoeuvre. I hope the government is listening to strong voices coming out of industry'.
At the beginning of the week, the Chancellor refused to reverse the plan to withdraw taper relief, despite having listened to the concerns of leading business organisations.
