Inland Revenue 22
                                                  17 March 1998
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           CAPITAL GAINS OF COMPANIES: FURTHER REVIEW
                                
The Chancellor has today announced that the Government will be
giving  further consideration to the tax treatment of capital
gains made by  companies.  More time will be allowed for
representations to be made on this,  in the light of the
proposed reform of capital gains tax for individuals.  The 
Government's objective remains to have a tax system which
encourages  investment, promotes enterprise and is fair to
all.  

DETAILS

1.   The reform of capital gains tax (CGT) that the Chancellor
announced  today applies to individuals, trustees and personal
representatives (see press  release Inland Revenue 16). 
Companies are not affected by this reform, as  they pay
corporation tax on their capital gains.  

2.   The CGT reform follows wide consultation (see press
release  Inland  Revenue 16 for more details).  Most of the
representations received during  the consultation concentrated
on the personal sector.  The Government is  grateful for those
responses that considered the treatment of companies'  gains,
but thinks it appropriate to allow a further period for
comment now that  the proposed changes for the personal sector
have been announced.

3.   Comments are invited on the taxation of companies'
capital gains.   These should be sent to:

Richard J Thomas
Inland Revenue,
Capital and Valuation Division
Room 308
22 Kingsway
London WC2B 6NR

to arrive by 30 June 1998.


INLAND REVENUE PRESS OFFICE
Media enquiries to:  0171 438 6692/6706/7327