Darling to meet business leaders

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Business leaders have been joined by unions and the opposition in raising concerns over the decision to abolish taper relief on the tax, announced in Mr Darling's Pre-Budget Report.

They argue that the change will hit small businesses and entrepreneurs rather than the private equity firms it was designed to target.

The meeting comes in response to an open letter to the Chancellor from the CBI, British Chambers of Commerce, Institute of Directors and Federation of Small Businesses warning that abolition of the relief will "undermine enterprise" in the UK.

At the Chancellor's invitation, Richard Lambert, director general of the CBI, David Frost, director general of the BCC, Miles Templeman, director general of the IOD, and John Wright, national chairman of the FSB, will visit the Treasury.

A spokesman for the FSB said they hope to persuade Mr Darling to rethink his plan to impose an 18% flat rate for capital gains tax on profits from sales of assets, in place of the current sliding scale which can see entrepreneurs pay as little as 10%.

The FSB has warned that the proposed changes to CGT would leave entrepreneurs out of pocket not only as they build their businesses but also in retirement.

Many entrepreneurs regard their business as their pension plan, and aim to live off the proceeds of its sale when they reach retirement age. They now face an 80% increase in the amount they are expected to hand over to the taxman, leaving a smaller pot for them to live off in old age.

An FSB spokesman said: "Many business owners, who started from scratch and worked long hours at considerable personal financial risk, were depending on the sale of their business to fund their retirement. With the increase in CGT from 10% to 18%, these business owners will see a lower return on their investment. This comes on top of the removal of tax relief on share dividends in 1997 that did a great deal of harm to pension provision in the UK."

Even though the change does not come into effect until April 2008, the FSB warned that Mr Darling's decision will hit business people selling up before then, as potential buyers are likely to seek a discount in the knowledge that the alternative to an immediate sale is a larger tax bill later on.