This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7205811.stm

The article has changed 17 times. There is an RSS feed of changes available.

Version 1 Version 2
No U-turn on capital gains reform Capital gains move to be unveiled
(about 2 hours later)
The government is due to unveil details of its proposed changes to capital gains tax - and is not expected to back down in the face of business criticism. The government is due to unveil details of its proposed changes to capital gains tax, amid widespread reports of concessions after business criticism.
At a meeting with business leaders on Wednesday, ministers said that the lowest tax rate, 10%, would still go up to 18% this April. Business leaders had said they did not expect minsters to reverse plans to replace the 10% rate for assets held for at least two years with a flat 18%.
But press reports say the rate will be halved to 9% on gains of up to £750,000 on the buying and selling of assets.
The plans have enraged small business owners who would be worst affected.The plans have enraged small business owners who would be worst affected.
Ministers have hinted that tax relief could be introduced for the smallest firms so as to lessen the impact. At recent talks with business leaders, ministers were quoted as saying the 10% rate would still go up to 18% this April.
The proposed changes to capital gains tax were announced by the Chancellor Alistair Darling in his pre-Budget report last October. 'Deeply disappointed'
It will see profits made from the sale of firms and shares held for two years or more taxed at 18%, rather than at the current rate of 10%. Institute of Directors director general Miles Templeman said: "It is clear that the government is not going to change the core of its proposals to modify capital gains tax. We are going to see a single rate, with no taper relief.
This would mean private equity bosses, who have made fortunes from buying and selling companies, will no longer be able to pay just 10% on their vast profits. "We are deeply disappointed but not surprised. The government's stance implies that there will still be a substantial tax increase which is bound to damage business."
But it also means that budding entrepreneurs could be put off, while existing small business owners have described the changes as "potentially ruinous". The proposed changes to capital gains tax were announced by Chancellor Alistair Darling in his pre-Budget report last October.
The changes would mean private equity bosses, who have made fortunes from buying and selling companies, will no longer be able to pay just 10% on their vast profits.
But critics said it also meant budding entrepreneurs could be put off, while existing small business owners described the changes as "potentially ruinous".