Specialists in tax at David Allen Chartered Accountants have welcomed the review of Capital Gains Tax (CGT).
The recently launched consultation, prompted by Chancellor Rishi Sunak and carried out by Office of Tax Simplification (OTS) will look at the structure of the tax, the rates levied and the current complexities with regards to existing reliefs. The aim of the review is to consider fairness and simplification of the administration and technical issues associated with the tax.
Sue Jeffrey, Tax Partner at David Allen said: “We are pleased to see that this has come under review and that our clients are being asked for their opinion too. We will be making representations on behalf of the issues faced by our clients with the hope that some of the unnecessary complexities of the current system are simplified.”
CGT is charged on profits from the disposal of assets including shares, funds, second homes or buy-to-let properties, business premises, paintings and antiques worth over £6,000, with the rate dependent on the individual’s income and the type of asset sold. CGT collected by the Government is at an all time high, and has risen by 18% over the past two tax years.
The tax can often come as a surprise for clients who give away assets as it can be imposed regardless of the fact that no sale proceeds are received. For example, gifts of property, shares or investments to children will often trigger an unwelcome CGT liability unless carefully planned for with advice from specialists.
The tax team at David Allen will continue to monitor the consultation and will keep clients updated with outcomes which may impact them now or in the future.
Tax payers are being asked to comment as part of the consultation by completing an online survey which can be found at: perhaps remove this long URL and just say can be found by clicking here.
The survey is open now and will be available until the end of the summer. The higher level call for evidence is requested in two stages. Our first representations will be made by 10 August 2020 with a further stage to follow which will close on 12 October 2020.
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