David Cameron hints at CGT compromise
The UK government has today hinted at a compromise on the proposed increase in capital gains tax, which is rumoured to be set to rise from 18% to 50%. It is believed that the government will introduce exceptions for entrepreneurs and those nearing retirement as a means of reducing the burden on these two particular areas of society. However, will this be enough for the Conservative rebels?
There is no doubt that David Cameron is struggling to push through a straightforward increase in CGT from 18% to 50% and indeed there are rumours of Conservative and Labour MPs working together on a "no vote". However, the fact that David Cameron has indicated his government is "listening" is a move in the right direction and one which could appease the rebels in his party. This is set to be the first major test of David Cameron's leadership and while he has made few errors in his early days in office he has yet to really face any strong challenges.
While the coalition government intends to see out a full five-year term there are many who believe this is an impossible task and we could actually see another election in less than 12 months.
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