The Office of Tax Simplification's recent proposed reforms to Capital Gains Tax (CGT) include a proposal to align CGT closer to Income Tax. This would see the maximum rate increase from 28 percent to around 40 percent.
In 2017/18 CGT brought in £8.3 billion, which was dwarfed by the £180 billion that Income Tax was responsible for.
Under the proposals, there could also be cuts in the profits that investors can make without paying tax, and other technical adjustments that could also increase inheritance tax bills.
Rebecca Fisher warns in ePrivateClient that, despite the widespread reservations, the Treasury is likely to consider these proposals as a "no-brainer" in its mission to raise tax receipts to pay for the Covid crisis bill.
New CGT proposals a 'far cry from simplification' is available to read on the ePrivateClient website via subscription. Her comments were also included in an article by The Financial Times available to read online via subscription, and in a Wealth Briefing article free to read here.
Rebecca is a partner in the private client group advising families and individuals on all aspects of private client law including wills, estate planning, administration of estates, trusts and powers of attorney.