Due to the public outcry arising from the Chancellor's Pre-Budget Report 2007 announcement of a major reform in the Capital Gains Tax system, there have been suggestions that a form of retirement relief could be reintroduced.

The Chancellor had announced in his Pre Budget Report that he proposed introducing legislation to simplify the capital gains tax (CGT) legislation. In summary, from 6 April 2008, taper relief and indexation allowance would no longer exist for individuals, trustees and personal representatives, and there would be a single 18% CGT rate applying to all gains.

We will have to await the UK Budget for more concrete evidence of the actual reform of CGT.