Firms "strongly against" CGT plans, says survey

Date: 21st January 2008

New research has indicated that over 60 per cent of the UK's smaller businesses are opposed to the chancellor's proposed changes to capital gains tax (CGT) payments.

A survey of the companies on the AIM (Alternative Investment Market) by Smith & Williamson found that 42 per cent were "strongly against" the establishment of a flat CGT rate of 18 per cent, while 25 per cent were merely "against" the new system, the Daily Telegraph reports.

The government's failure to clarify its position on CGT has recently led to speculation that Alistair Darling may back down on the proposals in the face of widespread resistance from the business community.

John Cowie, head of AIM at Smith & Williamson, commented: "It is clear that business owners are furious about the proposed change to the CGT regime.

"Ironically, the government has been fortunate that we are in a bear market right now and there are few capital gains to be made."

Director general of the Confederation of British Industry Richard Lambert recently described Mr Darling's proposals for CGT as "completely and utterly crackers".

TaxAssist Accountants focus their accountancy and tax skills specifically on small businesses and taxpayers in the UK.