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2 June 2010 Government 'listening to concerns' over capital gains tax

The new Government has pledged to 'listen to concerns' over its plans to increase capital gains tax (CGT), as the emergency Budget looms closer.

Iain Duncan Smith, Work and Pensions Secretary, stated the plans will include 'major exemptions', amid criticism that they could have a detrimental impact on entrepreneurs and families.

The Government intends to significantly increase CGT for non-business assets, such as profits from the sale of second homes, to bring them in line with income tax rates. Such a move could see rates rising from their current figure of 18%, to 40% or 50%.

However, Mr Duncan Smith said that the rates have not yet been finalised and that the Government is listening to concerns.

Meanwhile, Prime Minister David Cameron has pledged that the next decade will be 'the most entrepreneurial and dynamic in our history'.

Mr Cameron cited cutting red tape as one of the Government's top priorities, together with improving trade and transport links and increasing bank lending to businesses.

Chancellor George Osborne will set out the Government's plans in more detail in the emergency Budget on 22 June.