CGT changes 'in the name of simplicity'

The controversial changes to capital gains tax (CGT) payments are necessary to make the system simpler for small firms, Stephen Timms has claimed.

Speaking at a meeting of small business owners in Edinburgh this week, the enterprise minister said that Alistair Darling would look to "maintain the benefits of simplicity" when finalising the new CGT procedure in April.

According to the Herald, Mr Timms attempted to reassure business leaders in light of their anger over not being consulted before the changes were proposed by the chancellor in November's pre-Budget report.

He said: "There has certainly been a very large amount of discussion with individuals and representative bodies.

"The pre-Budget review is an announcement of changes that are proposed in the future."

Mr Timms also spoke favourably about the UK's good record in developing small enterprises into major companies.

The chancellor's plans for CGT, which involve abolishing taper relief and setting a flat rate of 18 per cent, have faced opposition from a number of business groups.