News

More than half (54%) of people that own equity in their business expect a detrimental impact from the government's proposed changes to capital gains tax (CGT), according to a new report from the Confederation of British Industry (CBI).

Chancellor Alistair Darling's plans to abolish CGT taper relief, which would result in a near doubling of the rate from 10% to 18%, have already been met with fierce opposition from printers and industry bodies alike.

The report surveyed 500 chairmen and directors of SME operations and found 61% owned equity in their business.

Some 43% of respondents indicated that they would alter investment in new business if taper relief were scrapped.

A mere 6% expected the changes to ring in a positive impact, 50% forecast no impact and 40% predicted a negative impact.

The feedback from respondents who own equity in their business was significantly more negative, with 54% expecting a negative impact, 35% replying "very negative" and only 6% predicting a positive change.