CBI warns Chancellor on CGT Increase

The CBI have sent an open letter to Chancellor George Osborne stating their concerns about the proposed rise to CGT in the forthcoming emergency budget on 22 June.

The CBI argues that decreasing the deficit should be done by controlling spending rather than increasing taxes. Specific points made by them include:

• The CBI wants to see a broad definition of business assets (which would benefit from tax relief) to prevent disincentives to investment or start-ups, and the tax should be structured to minimise the impact on long-term investment.
• The CBI is encouraged by the Dyson commission's support for the R&D tax credit and urges the Government to retain it in its current form.