Chancellor expected to announce reprieve for small businesses
The Chancellor Alistair Darling was today expected to announce a climbdown on controversial proposals to introduce a new flat rate capital gains tax of 18%.
Following heavy pressure from business leaders, Darling was expected to halve the flat rate of 18% for at least the first £750,000 of gains made by the buying and selling of assets. The news will be welcomed by small businesses including brokers planning to sell some or all of their business, who can now expect to pay signifcantly less tax.
The measures are expected to cost the government up to £200m in lost revenue. The new capital gains tax regime will be announced today (Thursday) and will come into effect on April 1.
