Abstract
Capital Gains tax (CGT) has been much reformed in history because it is a very complex tax. CGT is "a tax on the increase in the value of an asset between its acquisition and its disposal" (IFS). Chancellor Alistair Darling introduced his Pre-Budget Reporting on 9 October 2007 which showed many changes notably in tax system. The objective of the government is to create "a strong economy and a fair society". In this report, changes in capital gains tax from 6 April 2008 created large negative reactions by public and lobbies. The amended report published in January 2008 was better but did not convince entirely. The following essay will evaluate the changes to Capital Gains Tax by explaining Capital Gains Tax and its new changes in UK, by discussing the impacts through tax theories and then by discussing the reactions by lobby groups.
