Small business leader calls for end to CGT uncertainty

Date: 3rd January 2008

A leading figure in the UK's small business community has urged the government to clarify its position on the proposed changes to capital gains tax (CGT).

Peter Archer, East Sussex regional chairman of the Federation of Small Businesses (FSB), called on Alistair Darling to announce the revisions to his pre-Budget report as soon as possible in order to end the tax uncertainty currently affecting the nation's small enterprises.

With the government set to abolish taper relief on CGT in April this year, the proposals have come under fire from many business groups, with the FSB hoping that the chancellor will reconsider his policy, the Sussex Express reports.

Mr Archer explained: "We are still no clearer on what will happen with the tax arrangements for millions of small business owners and entrepreneurs come April next year.

"This is not a good situation to be in and one that we had hoped would all be resolved by now."

In December, Mr Darling announced that he would publish details of the new CGT system in early 2008, leading to speculation that he was considering a U-turn on the proposals due to opposition from small businesses.