Capital gains tax changes afoot?

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    Capital gains tax changes afoot?

    So it seem the chancellor has ordered a review of capital gains tax, payIng special attention to the reliefs and allowances To see if it’s fit for purpose, the Covid clawback starts here maybe.

    #2
    Yes, the location of the Tory magic money tree is finally known!

    Those with savings, securities and property.

    No doubt they'll all continue voting for Bozo
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Perhaps they're going to remove the current tax on inflation 😂 (yes, I'm joking)

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        #4
        If they announce changes, can anyone say when they'd be likely to take effect? E.g. immediately versus in the new tax year?

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          #5
          Inheritance tax will be the other easy target.
          After all the furlough money that he’s handed out Rishi will want to ensure that the £325,000 rule and 7 year rule are still ‘fit for purpose’.

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            #6
            It probably needs some fine tuning.

            It's sensible to encourage people to invest and take risks.
            But it's not really sensible to give the same break to people just for buying a house and living in it.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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              #7
              Originally posted by xingpot View Post
              If they announce changes, can anyone say when they'd be likely to take effect? E.g. immediately versus in the new tax year?
              The review concludes on October the 12th. So maybe april 2021

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                #8
                Tom Selby, senior analyst at the financial adviser AJ Bell, said: “With UK borrowing set to hit its highest level in peacetime history, Sunak’s request for a review of CGT feels like the starting pistol for a tax grab ahead of the Autumn budget later this year.”

                Sunak is known to be concerned that households are able to drive down their CGT tax bills using a variety of avoidance measures. While the top rate of income tax is 45% and 40% for earners over £50,000, Selby said the average CGT paid on the sale of assets was 15%.

                A shift to align CGT and income tax rates, which would be supported by Labour, could simplify the system and raise tax revenue – “particularly if the annual exempt amount, currently set at £12,300, is either slashed or abolished altogether”, Selby said.

                Above copied from the Guardian website.

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                  #9
                  It will actually be more as no allowance is made for inflation. The longer you've held the asset the higher it will be. It's also a dirty trick to include the gain in your income which pushes many people into a higher CGT tax bracket.

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