Are CGT Changes Afoot?
Chancellor, Rishi Sunak, has written a letter to the Office of Tax Simplification asking for a review of the workings and basis of Capital Gains Tax.
It is clear from the letter, which in an unusual move has been made public, that this is going to be a root and branches review of this, typically, generous tax. This provides a potential insight as to the Chancellor’s targets for increasing tax as we move towards a phase where there is an attempt to rebalance the public finances.
Head of EQ Taxation, David Morrison, commented,
“Given the current economic conditions which we are going through just now, this is perhaps the first indication of the Chancellor’s initial thinking as to how best to raise more tax.
Large increases in corporation tax and income tax rarely have the effect of raising tax revenues and therefore it seems clear that the Chancellor will initially target perceived wealth with Capital Gains Tax and inheritance tax most under the microscope.”
If you would like to discuss your tax position with an EQ Taxpert get in touch with one of our team by calling one of our offices.