Chancellor defends delay over CGT reforms

Date: 4th January 2008

Alistair Darling has explained his decision to delay the announcement of details for his capital gains tax (CGT) reform by stating that he simply wants to get things "right".

The chancellor has come under increasing pressure to clarify the Treasury's position on CGT since November, when the pre-Budget report revealed plans to abolish taper relief and introduce a flat rate of 18 per cent, Accountancy Age reports.

Speaking to the Financial Times, Mr Darling said that he was "very aware" of the business community's desire to know specifics but stressed the importance of taking time over the issue.

"I want to be very sure that we make the right decision…because once it is made it is made," he remarked.

Lord Jones, the trade and investment minister and former director general of the Confederation of British Industry, recently called on Mr Darling to offer businesses significant concessions to allay their fears over the new tax regime.

Under changes outlined in the pre-Budget report, the new CGT rules are set to come into force from April this year.