CGT changes 'could be pushed back by a year'

Date: 17th January 2008

Industry analysts are speculating that Alistair Darling may choose to delay the proposed capital gains tax (CGT) reforms for 12 months, as the government's silence over the issue continues.

The chancellor has recently come under increasing pressure to clarify his position on the changes - due to be implemented in April - but has so far made no announcement, much to the chagrin of UK business leaders.

As a result, City commentators have predicted that the government is preparing to push the new system back by a year due to indecision among ministers, the Financial Times reports.

The Treasury has categorically denied this, however, with government insiders suggesting that an announcement could be made next week, when Gordon Brown returns from his state visit to China and India.

Nevertheless, the speculation is likely to continue to build as long as the government refrains from making a definitive statement on the issue, according to the newspaper.

Speaking in parliament last week, the prime minister said that further details of the CGT plans would arrive "in due course".