The Government faced mounting pressure last night to clarify its controversial plans to change the capital gains tax regime, The Telegraph reports.
Richard Lambert, the CBI's director-general, led the protests, warning the Chancellor that the "complete confusion" caused by his handling of the reforms was causing "enormous damage" to the reputation of the Government.
Alistair Darling revealed in October plans to scrap the 10% rate of capital gains tax (CGT) paid on business assets held for more than two years from April 6 and replace it with a flat rate of 18% for all assets.
THE GOVERNMENT ACCEPTS that it will almost certainly have to compensate Northern Rock shareholders to minimise the threat of messy litigation if it nationalises the bank, The Independent reports.
The Chancellor, Alistair Darling, reiterated yesterday that his priorities in settling the crisis were the taxpayer, consumers and financial stability. But with 180,000 angry small shareholders in danger of losing money and aggressive hedge funds threatening to sue, the Government is understood to be ready to offer some compensation to investors.
BORROWERS WILL BE ALLOWED to stop repaying debts by taking out a court order, under radical plans outlined yesterday by the Government, The Times reports.
The proposals would mark the biggest shake-up of personal insolvency legislation in years and come at a sensitive time for the financial services industry, which is bracing for an increase in consumer bad debts.
The plans, which were outlined in a consultation paper yesterday by the Ministry of Justice, would allow consumers who fall into financial difficulties through a change of circumstance, such as losing their job or divorce, to stop making repayments on personal loans, credit cards and other debts for up to a year by applying for an “enforcement restriction order” (ERO).
A NEW SCANDAL is brewing in the personal finance industry that could dwarf the revolt against overdraft charges which has tarnished the reputation of the banks and won customer refunds of £1bn, The Independent reports.
As the Office of Fair Trading begins a court case against those bank charges, thousands of customers are seeking, and winning, refunds of premiums for payment protection insurance (PPI).
PPI is meant to cover mortgage, personal loan and credit card borrowers if they lose their jobs or fall ill but the policies are riddled with exemptions and are often considered a waste of money. Taking out a policy can add £3,000 to the cost of a £7,500 loan.
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