Are Capital Gains Tax Reforms a Threat to Investors?
Many commentators have highlighted Entrepreneurs Relief (ER), which is costing £2bn more than was intended, but other investors could also be in the firing line.
Last year Capital Gains Tax raised £3.9bn, which is 50% less than in 2009, and this is despite the main rate being raised from 18% to 28%. That rate increase came straight after the last election in 2010 and at the time there were rumours of it going to 40%.
Everyone who is contemplating making a large capital gain in the next 3 years or so should review what can be done now to secure their entitlement to the current rate of tax and pre-empt any increases, which in most cases can be done without bringing forward the sale of the asset or the payment of the tax.
For more information, contact Nick Scull, Tax Partner 01904 464100 or firstname.lastname@example.org