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CGT changes are hated, say business leaders

The changes to the capital gains tax regime proposed by chancellor Alistair Darling in his pre-Budget report (PBR) are hated by business.

This is the view of Lord Jones, former head of the Confederation of British Industry and a government minister in the enterprise department. He said that the proposals are causing real anger among his colleagues.

While he says he believes that the policy is fair, it is regarded with horror by small to medium sized enterprises.

The proposal to set a flat rate of 18% for CGT has been attacked from corners in the business world.

Some business owners had been paying 10%.

Aviva, the UK's second largest life assurer, has lobbied vigorously on the CGT plans. Chief executive Andrew Moss said following a review of the £18.7bn company's books, the changes could cut 1-2% off sales of life products. “This is a key issue with Aviva," he said.

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