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It is widely reported that the Chancellor will shortly offer a major concession to small business owners and entrepreneurs infuriated by his plans to increase the rate they pay by 80 per cent. He wanted to scrap the lower 10 per cent rate of CGT and replace it with a new flat rate of 18 per cent.
Small business pressure groups have been campaigning against the measure since its announcement in the Pre Budget Report and Mr Darling recently signalled he had been listening to them and delayed his final decision by several weeks.
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If he goes ahead with this move, there should be a sigh of relief from small businessees but the Treasury is still expected to come under fire from big businesses and entrepreneurs.
At the moment, Britons selling businesses pay CGT at 10 per cent if they have owned the company for at least two years. However, Mr Darling announced last October that profits on selling companies would be taxed at a new flat rate of 18 per cent.
According to the Financial Times, this would be a 'humiliating climbdown' for the Chancellor.
An announcement to MPs is expected later today (Thursday).
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The Editor
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