Tories 'urge' u-turn on CGT reform

The Conservative party is urging the government to retract recently announced changes to capital gains tax (CGT), it has emerged.

According to reports, following the publication of an interim report by the European School of Management (ESM), the Conservative's are urging a u-turn on the grounds that the reform could undermine the UK's ability to attract the creation of small to medium-sized enterprises (SMEs).

The recently announced reform of the UK's CGT rules will see the introduction of a flat rate of tax set at 18 per cent.

"The tax system for small businesses in the UK is becoming significantly less competitive," said the report.

"[Such changes] will further undermine the attractiveness of the UK as a place to create and grow a business. The long-term implications for investment and job creation could be very damaging," it added.

Under the present rules governing CGT, the tax levied could be calculated on the basis of a lower rate of ten per cent.

The ESM was established in 1819.