Financial Times FT.com

Darling bows to pressure on CGT

By Jean Eaglesham, Chief Political Correspondent

Published: January 23 2008 20:25 | Last updated: January 23 2008 23:46

Alistair Darling will announce on Thursday a humiliating climbdown on capital gains tax, offering concessions in response to corporate lobbying against a move that has soured Labour’s relationship with business.

The chancellor will set out to MPs a measure to reduce the impact on entrepreneurs of his contentious proposal to impose a single 18 per cent CGT rate from April 6, scrapping the 10 per cent rate for many business assets.

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