Tory MP calls for capital gains tax holiday

The government should introduce a three-year capital gains tax holiday, according to former minister Liam Fox.

The Tory MP believes David Cameron needs to introduce a variety of measures to encourage spending and 'shock' the economy into action.

In an interview with bbc.co.uk, he argued that a capital gains tax hiatus would "throw down the gauntlet" and show that Britain is well and truly open for business.

"If we don't take some risks we'll not get growth and if we don't get growth, we'll not get re-election. We are all going to have to realise that we need to row in together over the next few years as we need to deliver a majority Conservative government," he said.

A capital gains tax holiday would be fantastic news for any business owners planning an exit in the next few years. CEOs could potentially save between 18 and 28 per cent of their profits should they sell their business during this holiday.

Thisismoney.co.uk reports that Fox would also like to see a reduction in benefits handed out to employed people.

With the sort of economic problems that we face in the UK, it is irrational and unreasonable to expect those in work should keep all their social benefits," he added.