Insurance group makes late CGT plea

The trade association for the UK insurance industry is set to ask Alistair Darling to reconsider his capital gains tax (CGT) reforms this week.

In a last-ditch attempt to change the chancellor's mind before he announces the Budget next month, the Association of British Insurers (ABI) will warn Mr Darling that going ahead with the CGT changes could be disastrous for the industry.

According to the organisation, the Treasury's plan to impose a flat CGT rate of 18 per cent could reduce the value of the insurance bonds sector by billions of pounds and have a serious affect on public savings, the Independent reports.

"This impact on the savings industry was an unintended consequence of the rush to bring forward changes to CGT in the pre-Budget report," said ABI director general Stephen Hadrill.

"We don't want the public's savings to be the victims of too little consultation and hasty decision-making," he added.

Formed in 1985, the ABI is comprised of about 400 member companies.

Alistair Darling will deliver his first Budget as chancellor on Wednesday March 12th.