Alistair Darling, Chancellor, has delayed the announcement of upcoming changes to Capital Gains Tax (CGT). In his pre-budget report, the Chancellor revealed he would be changing the CGT system.
The original tapered relief rules will instead become a single flat rate charge of 18%. Good news for some, not so for others.
Now he feels he still needs to spend time perfecting the changes and is due to announce the definitive report at the start of 2008. Many people feel unhappy with this as the changes were due to come into place in April 2008 but this may be unlikely to happen now.
I suppose it is good that he is taking as much time as he feels is needed and I would rather he took time out now to get it just right, but it is making everyone anxious as they wait on tenterhooks for the changes.
The uncertainty is stopping people make decisions on investments, the buying and selling of property and business, as they will not know how it will affect them.
Many people are unhappy with the delay so I hope for Darling’s sake, it’ll be worth the wait.
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