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Changes to capital gains tax proposed by the Chancellor have been strongly criticised by former economist Vincent Cable.
He believes taper relief should indeed be withdrawn but regards the Government's handling of the move as inept.
Speaking at a conference organised by the British Venture Capital Association, Liberal Democrat deputy leader Dr Cable attacked 'the Government's hamfisted approach to the reform of CGT'.
He added that 'there is no justification for complex taper relief and no justification for treating capital gains differently from other forms of income.
'Unfortunately, the Government went about reform in a very clumsy way without prior consultation and without thinking through unintended consequences.
The Chancellor's recent Pre-Budget Report, said Dr Cable, 'disregarded the problems of small family businesses whose concerns were accommodated by retirement relief — and there will be a gulf between tax rates on income and capital gains, which will lead to large scale avoidance'.
