CGT reforms 'needlessly complex'

Date: 24th January 2008

Although he may have chosen to soften the blow of capital gains tax (CGT) reform by introducing concessions, many business leaders remain unhappy with Alistair Darling's handling of the issue.

The chancellor's prolonged delay in confirming the plans for CGT did not endear him to many industry figures, while others fear that the reforms, which were intended to simplify the business tax system, may actually make the situation more complicated.

"While we welcome the concessions to mitigate the impact on small businesses … we are concerned that this could put greater pressure on a tax system that is already struggling to cope," said Frank Haskew, tax faculty head at the Institute of Chartered Accountants in England and Wales.

Meanwhile, the Charted Institute of Taxation (CIOT) commented that the recent controversy surrounding CGT changes had emphasised the importance of proper consultation between the government and business, Accountancy Age reports.

"In taxation, the only time that change should come before consultation is in the dictionary," said CIOT president Rob Ellerby.

Speaking after the eleventh-hour meetings with Treasury officials on Wednesday, director general of the Institute of Directors Miles Templeman said that the government's treatment of the business community's CGT concerns had been "a big disappointment".

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