Treasury muses capital gains tax overhaul

The UK Treasury yesterday proposed changes to capital gains tax which would save companies cash when they restructure for commercial reasons.

The move, which would deprive the Treasury's coffers of up to £300m a year, would mean companies no longer have to employ complex offshore procedures to try to avoid paying for tax for restructuring.

In a statement to launch a consultation on the changes, Chancellor Gordon Brown said: " There are many factors that make the UK particularly attractive, including our sophisticated financial markets and our strong trading links with all parts of the world.

"To ensure this remains the case, it is essential that the corporate tax system keeps pace with changes in the global business environment."

The move has already been welcomed by the Confederation of British Industry, which said it is enthusiastic about the relief this will bring large companies.

The consultation will last until October.