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The Institute of Directors has once again voiced its opposition to the abolition of taper relief, claiming that the Government has not taken into consideration the future of UK business.
The industry body's director general, Miles Templeton, criticised as 'very unfair' the Chancellor's plan to replace, from April 2008, capital gains tax's 'very favourable' sliding scale with a flat rate of 18%.
Mr Templeton said the proposal is 'not encouraging long-term investment and long-term saving — and, we think, that is the opposite of what the Government should be trying to do'.
The plans for changes to CGT have been under constant fire since they were announced last month in the Chancellor's Pre-Budget Report speech.
The IoD was an early critic of the move and, along with other major industry organisations, met with Alistair Darling in an attempt to persuade him to reverse his policy.
'I don't think [the Treasury] realised quite how extreme the reaction would be,' said Mr Templeton. 'We wonder whether they just didn't consider all the implications of what they're proposing.'
