In an interview in the Sunday Times, Cameron (pictured) said he does not want to “punish” savers.
The Government has proposed significantly raising CGT, potentially in line with levels of income tax.
Cameron has been facing pressure from Tory backbenchers who claim that ordinary savers selling shares or second homes would be unfairly hit.
Conservative backbencher John Redwood recently wrote an open letter to the Treasury, calling for a capital gains tax regime that tapers for long-term investments, in order to protect and reward savers.
Cameron told the Sunday Times: “I totally understand the arguments. I did not come into politics to punish people who want to do the right thing and save.”
He is expected to warn today that cuts to be announced in the emergency Budget in two weeks time will be severe, and add that Britain’s finances are worse than previously thought.
The Sunday Telegraph reported that the Government was looking at a number of exemptions from the new CGT rates, including for those nearing retirement. Today’s Financial Times reports the Treasury is playing down this idea and that a more likely approach would be the reintroduction of tapering relief.
In the Sunday Times interview, Cameron again refused to rule out an increase in VAT, which many economists suggest may be increased to 20 per cent in the upcoming emergency Budget.