Chancellor Alistair Darling has been criticised for delaying the disclosure of his final plans for capital gains tax (CGT) until 2008.
Shadow chancellor George Osborne leapt at the chance to criticise Darling, who had previously committed to delivering his final CGT proposals before Christmas, when he told parliament that he would be delaying this announcement until 2008.
Small businesses were hoping that concessions would be announced this year to soften the blow dealt by Darling’s controversial plans to scrap CGT taper relief.
Speaking yesterday, Osborne said: “Today we learned that [Darling] isn't going to publish this until the New Year although business leaders were being briefed to expect this in the next few days.
“It's an open secret that the Treasury concessions are ready. He should try to get one thing right by announcing them in the next couple of days and end the uncertainty he has placed over millions of small businesses and employee share –owners.”
Tenon, a firm of accountants and advisers to entrepreneurs, criticised Darling for leaving business owners ‘in limbo’ by delaying this announcement, which would be compelling for those considering whether or not to sell by April 2008 when taper relief is scrapped.
Andrew Hubbard, Tenon's national tax technical director, also criticised the government for failing to consult with businesses in the first place.
He said: “People facing key business decisions should not be left in this state of limbo. The government has now got itself boxed in. Any changes will be seen as a climb down rather than a sensible measured response to proper consultation.
“It is not credible that dealing with such a wide-ranging reform can be squeezed into a matter of a few weeks.”
© Crimson Business Ltd. 2007
