Chancellor Rejects Calls For Tax U-Turn

by Carla Johnson, Investors Offshore.com, London

25 October 2007

Leaders of the UK’s four biggest business groups met Chancellor Alistair Darling this week to discuss their concerns over planned changes to the capital gains tax regime.

Richard Lambert, Director-General of the CBI, David Frost, Director General of the British Chambers of Commerce, Miles Templeman, Director General of the Institute of Directors, and John Wright, National Chairman of the Federation of Small Businesses, attended the meeting at the Treasury on Monday .

Speaking after the meeting, Richard Lambert announced that:

"Each of us set out our deep concerns over the abolition of capital gains tax taper relief, after which the Chancellor explained the background to the changes."

"Mr Darling said he would be happy to work with the four business groups to develop measures to stimulate enterprise in the UK, and that he would listen to the group's proposals for a way forward on capital gains tax."

He continued: "We believe the Pre-Budget proposals represent a significant step in the wrong direction for the UK economy, and we will continue to press the case for them to be changed. As things stand, they will hold back vital investment in businesses of all sizes and send out totally the wrong message about the Government's attitude to enterprise."

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