Sussex businesses are lobbying the Government to stop it taxing profits which have not yet been made.

The Institute of Directors believes a bill proposing a tax on unrealised gains - such as where a property has increased in value but has not yet been sold -

would be unfair.

The joint Inland Revenue and Treasury Consultation Document on Reform of Corporation Tax aims to simplify the tax system.

Branch treasurer Richard Hopkins said:

"Everyone wants to see a simpler tax system but not if that comes at the cost of business.

"The consequences of companies being forced to pay tax before any profits have been realised would, we believe, have a severe effect on Sussex businesses.

"Companies may have to sell assets to pay tax, which could take its toll on jobs."