UK - Darling changes CGT proposals to benefit small businesses but not private equity

Alistair Darling has backed down from his November Pre-Budget Report plan to enforce a single 18% tax on capital gains. The Chancellor announced today that while he was going to go ahead with the scrapping of taper relief (which gives tax incentives to hold assets for longer), he will halve the 18% rate on gains below a £750,000 threshold. This concession will benefit smaller businesses and entrepreneurs but is not advantageous for private equity. The changes are due to come into effect on 6 April. Until then, capital gains will be taxed at 10% conditional upon the period of ownership.