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williamberry
Average Member
12 Posts |
 Posted - 23 October 2007 : 10:30:51
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Business leaders failed to secure a U-turn on controversial changes to capital gains tax in a hour-long meeting with Chancellor Alistair Darling.
CBI director general Richard Lambert said talks had been "positive" and hailed agreement from the Treasury to look at ways to encourage entrepreneurs.
But Mr Darling is understood to have made clear that the Government would press ahead with the move, despite claims it could "undermine enterprise".
The meeting was convened in response to an open letter from four business bodies warning against the abolition of taper relief.
The CBI, British Chambers of Commerce, Institute of Directors and Federation of Small Businesses argued that the change, announced in Mr Darling's Pre-Budget Report, would hit small businesses and entrepreneurs rather than the private equity firms it was designed to target.
Under the new regime, due to come into force from April, an 18% flat rate for capital gains tax will be levied on profits from sales of assets, in place of the current sliding scale which can see entrepreneurs pay as little as 10%.
Emerging from talks at the Treasury, Mr Lambert said: "We explained to the Chancellor in forceful terms that our members feel very, very strongly about this. He agreed to work with us on ways to stimulate the economic environment, the entrepreneurial environment. He agreed to listen to our ideas for a way forward on capital gains tax.
"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."
David Frost, director general of the British Chambers of Commerce, said: "The Chancellor can now be in no doubt of the views of business towards the changes he made to capital gains tax in the Pre-Budget Report. The Chancellor has agreed to work with business on measures to stimulate enterprise in the UK and seek ways to find a way forward on the issue of CGT."
http://ukpress.google.com/article/ALeqM5i3oi4B8wEuKa6M1adf62GXmBOe7A
Regards, William Berry
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Business groups can't sway Darling
