Business and Treasury hold crunch CGT talks

Date: 23rd January 2008

The UK's business leaders have met government officials today for a final consultation on the proposed changes to capital gains tax (CGT).

Representatives from the Confederation of British Industry and Institute of Directors sat down with chief secretary to the Treasury Andy Burnham to discuss the controversial plans, which have been met with strong opposition throughout the business community.

The meeting is likely to be the last chance for business figures to have their say on the reforms, with Alistair Darling expected to make his long-awaited announcement tomorrow or early next week, the Financial Times reports.

A letter sent to the chancellor this week from manufacturing business group EEF stated that the body could "not stress enough the strength of feeling on this issue amongst the business community".

In addition, Stephen Alambritis of the Federation of Small Businesses said that Mr Darling's delay in announcing his CGT plans had "left a sour taste", irrespective of the final decision.

The chancellor's pre-Budget report, issued last October, announced plans to set a single CGT rate of 18 per cent, with the nation's small businesses expected to be hit particularly hard.

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