Chancellor delays Capital Gains Tax decision until New Year

The current CGT regime means that basic rate taxpayers who have held shares in their employer for at least 2 years are only subject to a 5% CGT charge. The Chancellor’s Pre-Budget Report outlined changes that would mean that these employee shareholders would have to pay an additional 13% tax on any gain above £9,200 from April 2008.

ifs ProShare, an organisation that seeks to promote the benefits of employee share ownership, argued that this would mean employees who have contributed to the s