Article: Chancellor performs U-turn on capital gains tax

The Government announced an embarrassing u-turn over capital gains tax today after a storm of protest from business leaders.

Chancellor Alistair Darling said he was introducing a special 10% tax rate for the first Pounds 1 million of qualifying gains.

Mr Darling introduced a flat rate 18% rate in his first Pre- Budget Report last year - ending tapered relief down to 10% for some business assets.

But the move provoked a furious response from business leaders and after months of consultations Mr Darling announced his change to MPs.

Shadow chancellor George Osborne dubbed the announcement a "humiliating retreat" for the Chancellor's "one big idea".

Mr Darling told the Commons: "Following ...

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