The government is set to unveil details of its proposed changes to capital gains tax (CGT), amid reports of concessions after business criticism.
The government is set to unveil details of its proposed changes to capital gains tax (CGT), amid reports of concessions after business criticism.
Business leaders still expect ministers to scrap CGT taper relief from 1 April 2008 and set a single 18% rate.
Business leaders still expect ministers to scrap CGT taper relief from 1 April 2008 and set a single 18% rate.
But the government is also tipped to halve the rate to 9% on gains of up to £750,000, to help small firms.
But the government is also tipped to halve the rate to 9% on gains of up to £750,000, to help small firms.
Chancellor Alistair Darling first announced changes to CGT in October's pre-Budget report.
Chancellor Alistair Darling first announced changes to CGT in October's pre-Budget report.
At recent talks with business leaders, ministers were quoted as saying the 10% rate would still go up to 18% this April.
At recent talks with business leaders, ministers were quoted as saying the 10% rate would still go up to 18% this April.
The BBC has been told that ministers want to help "genuine entrepreneurial activity".
The BBC has been told that ministers want to help "genuine entrepreneurial activity".
'Deeply disappointed'
'Deeply disappointed'
Taper relief currently allows some higher rate taxpayers to pay as little as 10% CGT on profits from the sale of assets in any unlisted company or publicly-listed firm they work for, as long as they have held them for two years.
Taper relief currently allows some higher rate taxpayers to pay as little as 10% CGT on profits from the sale of assets in any unlisted company or publicly-listed firm they work for, as long as they have held them for two years.
It can also reduce the CGT liability for some basic rate taxpayers to 5%.
It can also reduce the CGT liability for some basic rate taxpayers to 5%.
Miles Templeman, director general of the Institute of Directors 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.
Miles Templeman, director general of the Institute of Directors 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.
"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."
"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."
Firms have criticised Mr Darling for failing to reach a decision on CGT earlier, saying this has added to uncertainty.
Firms have criticised Mr Darling for failing to reach a decision on CGT earlier, saying this has added to uncertainty.
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 profits.
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 profits.
But critics said it also meant budding entrepreneurs could be put off, while existing small business owners described the changes as "potentially ruinous".
But critics said it also meant budding entrepreneurs could be put off, while existing small business owners described the changes as "potentially ruinous".
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