Rumours of CGT moving to marginal income tax rate - would it be immediate?

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    Rumours of CGT moving to marginal income tax rate - would it be immediate?

    There have been rumours in the press that the Chancellor is considering taxing capital gains at marginal income tax rate, and that this may be announced at the November budget. Does anyone have any idea whether this change be likely to be immediate (like changes to SDLT often are) or would it be from 2021/22 tax year onwards?

    #2
    Wait for any announcement in the autumn budget

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      #3
      Originally posted by Gordon999 View Post
      Wait for any announcement in the autumn budget
      If it is immediate, that would be too late for tax planning purposes....

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        #4
        Given the huge cost of Covid19 & upcoming *****fest cost of Br**it they'll be a huge bill to pay & CGT for landlords is an easy target largely popular with the voters. Thinks, will this happen sooner or later....
        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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          #5
          Originally posted by JamesHopeful View Post
          There have been rumours in the press that the Chancellor is considering taxing capital gains at marginal income tax rate, and that this may be announced at the November budget. Does anyone have any idea whether this change be likely to be immediate (like changes to SDLT often are) or would it be from 2021/22 tax year onwards?
          If selected it would be operational from April 2021.He may use CGT on main residences over gains of £250000 which would cane Londoners and most of Surrey-ouch!

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            #6
            There is not going to be a November budget in 2020.
            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).

            Comment


              #7
              Originally posted by theartfullodger View Post
              Given the huge cost of Covid19 & upcoming *****fest cost of Br**it they'll be a huge bill to pay & CGT for landlords is an easy target largely popular with the voters. Thinks, will this happen sooner or later....
              |f the properties are held by a company,then gains may be realsed through adjusting share prices.Gains on shares are taxed more leniently,and there will be many opting to form limited companies.A smart accountant can circumvent many tax hikes.

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                #8
                I'm sure the chancellor is aware of this fiddle and is planning on tightening the loop-hole..
                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...

                Comment


                  #9
                  Originally posted by gnvqsos View Post
                  |f the properties are held by a company,then gains may be realised through adjusting share prices. Gains on shares are taxed more leniently,and there will be many opting to form limited companies. A smart accountant can circumvent many tax hikes.
                  It's not a fiddle, it's impossible (without a bent accountant).

                  The idea that a capital gain can be "realised" through adjusting share prices is wrong.

                  Until sold, the value of property (and any increase) simply sits on the balance sheet.
                  That may make the business (and therefore shares in it) worth more, but that value can't simply be transferred to the share holders.

                  A company or its directors can't "adjust" its share price.
                  It can either issue new shares or buy or sell them.

                  The gain in the value of shares only crystalises and becomes taxable when they're sold.
                  And who's, conceivably, going to buy them?

                  When a property owned by a company is sold, any gain is income.
                  So any profit arising from the gain is subject to corporation tax.
                  Other than by selling the business or shares in it (which isn't common), the profit can only be extracted by paying dividends or shutting down the business and splitting the money in line with the shareholding.

                  Any gain in the value of the shares is taxable, but at a lower rate than a gain in property.
                  But that advantage would normally be entirely undone by the 19% corporation tax that's due in parallel.
                  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).

                  Comment

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