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The Government's proposed changes to capital gains tax put tax professionals in an 'impossible position', Menzies' Penny Bates has warned.
Her remarks followed the Treasury Select Committee's criticism of the plan to abolish taper relief and replace it with a simpler flat rate of 18%.
Ms Bates, a private client tax partner, said that a lack of details from the treasury about the forthcoming CGT reforms means that the tax sector now has to be 'policed' despite a lack of 'total certainty' among professionals.
Penny backed the cross-party commission's evaluation of the Chancellor's plan for CGT by saying it had not been thought through, and that there were too many anomalies.
She added: 'It is rushed, short-sighted and penal to those wanting to retire from running businesses'.
If Alistair Darling did consult those within the tax profession, there is little evidence, said Ms Bates, who charged the Government with ignoring those with practical knowledge and experience.
She did not think that the Treasury Select Committee's paper would have any influence on the Chancellor's decision — announced in last month's Pre-Budget Report — because it would be difficult for him to back down.
'Alistair Darling refuses to budge no matter how hard people try to change his mind,' she said. 'I don't believe the report will have any effect.'
Finally, Penny also questioned whether the reported bonus for retiring business people — a one-off relief of £100,000 — would become a reality: 'The press says it will happen, but there is no evidence of that.'
In related new, the representative body for the employee shareowner industry praised the Treasury Select Committee for highlighting issues that could have an impact on its members.
ifs ProShare then called on the Treasury to set out how it intends to mitigate the potentially negative effects of CGT changes may cause employee share owners.
The organisation's Fiona Downes said: 'ifs ProShare has stated from the outset that only a minority of employee share holders are likely to be affected by these changes, but that this minority is significant.
'Our subsequent research confirmed that approximately 16% of those in an SAYE Sharesave Scheme could be affected, which amounts to over 270,000 people.
'Clearly the Government needs to mitigate the effects of these changes for these hard working employees, and we are therefore pleased that the committee has called on the Government to act.'
