Opposition toward plans to end taper relief on capital gains tax (CGT) is growing rapidly. The changes would see the scrapping of the 10% tax rate for business assets held for two years or more.
Conservative MP George Osborne launched a scathing attack against the Chancellor, claiming that his party would fight the abolition of taper relief on capital gains tax and gave a pledge to replace it if necessary. Osborne also predicted a Government U-turn due to the intervention of the four main business bodies reported in the Morning Advertiser last week.
Labour MP George Mudie, a member of the Select Committee, has called for the plans to be shelved for a year and warned that the changes would affect small business owners wishing to sell and employees wishing to buy shares in their own company.
Mudie was also concerned about the apparent lack of discussion of the proposals with the business community.
A petition, backed by the Federation of Small Businesses (FSB), has clocked up 12,000 signatures in less than a week.
A spokesman for the FSB said: "We're very encouraged by the response from our members, but we have a long way to go and the petition is just one way we're going to fight these dangerous plans for our members."
In response to the significant amount of criticism levied, the Prime Minster's spokesman said that the Government had done a huge amount to help the small businesses sector over the last 10 years and that the Chancellor had set out his decision on the matter in the Pre-Budget Report.