ALISTAIR DARLING will not make further significant concessions on either the taxation of “nondoms” or capital-gains tax (CGT), Whitehall sources say.

He is also set to press ahead with tax changes that leading accountants say will leave small businesses with a tax bill running into hundreds of millions and a huge increase in red tape.

The chancellor, despite proposing a lifetime “entrepreneurs’ relief” of £1m to soften the blow of the abolition of CGT taper relief and an increase in its minimum rate from 10% to 18%, has been under pressure to make further changes.

Business groups have also urged him to delay for a year the £30,000 annual levy on nondoms until disclosure and other issues are sorted out. But the new levy, which will apply to nondoms only after seven years in the UK, will go ahead.

The Treasury and Revenue & Customs are also taking a hard line on so-called income-shifting between husbands and wives. The measures, brought forward for consultation after the Revenue lost the £500,000 Arctic Systems case in the Lords, will raise £260m in its first year by clamping down on the way incomes and profits are allocated between husbands and wives within family businesses.

The Institute of Directors, in its budget submission published this week, will seek to delay the move. “The proposed legislation is wholly unsatisfactory,” it will say. “It will impose huge administrative burdens by requiring the application of an arm’s-length test that makes no sense in the context of family businesses.”

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