Press Release

FSB statement following meeting with the Chancellor

22 October 2007

The Federation of Small Businesses (FSB) has issued the following statement after meeting with the Chancellor to discuss the proposed changes to taper relief on capital gains tax.

John Wright, FSB National Chairman, said:

“This was a constructive meeting and we hope that there is scope for a compromise that will meet the aims of the Government without damaging the many entrepreneurs across the country.  The current proposals to change taper relief on capital gains tax go in the wrong direction and need to be changed.

“There are four and a half million small businesses.  Many would have been unable to start up under this proposed new regime.  Others that were relying on the proceeds of the sale of their business to provide for their retirement will now be heavily taxed on that income.

“We have put across our members’ views to the Chancellor in a forthright manner and he has agreed to further consultation with us.  We will now be presenting more evidence and information to the Treasury to highlight the damaging nature of this potential change to the tax regime for small businesses before next year’s Budget.  We are hopeful that a successful outcome to this situation can be achieved through meaningful consultation with the Treasury.”