Lord Jones, the Trade Promotion Minister and former Director General of the CBI, has admitted that CGT proposals have led to genuine shock within the business community.

The minister commented that the changes, which set out a flat rate charge of 18 per cent to be introduced next April and the abolition of taper relief, had been "so swift and so fast".

In addition, Lord Jones highlighted that, in common with all legislation, there is a risk that reforms may result in consequences that are unintended. However, he also suggested that the government was taking on board the views of the business community. This follows criticism of the government that such changes may serve to damage enterprise and long-term business investment in the UK.