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The BPIF has blasted the capital gains tax (CGT) reforms as "ill thought out and wishy-washy" and said the government's U-turn offered "little or no excitement".

Chancellor Alistair Darling yesterday (24 January) announced an "entrepreneurs' relief" rate of 10% on gains of up to £1m, but confirmed a single CGT rate of 18% would still come into force in April.  

A spokesman for the print industry trade association said: "While many of our smaller members can slip through the net, this is still an 80% hike in taxes for bigger fish who've accumulated profits over a lifetime of hard work.

"Companies with £1m-plus profits, which isn't a fortune anymore, will still be seeking to sell their assets by 6 April."

The government first proposed an 18% rate and the end of taper relief in last October's pre-Budget report.

The Federation of Small Businesses (FSB), which had proposed a rate of 9% on the first £750,000 of gain, welcomed the news, but said the handling of the issue had "eroded small businesses' trust in the government".