Chancellor Launches CGT Review
The Chancellor of the Exchequer, Rishi Sunak has announced a review of Capital Gains Tax (CGT).
The Chancellor has asked the Office for Tax Simplification (OTS) to review whether the tax is too low, in comparison to income tax rates.
Some people believe that this move is an attempt for Rishi Sunak to target the rich, and try and regain some of his budget which has been used as a result of the coronavirus pandemic.
There has been lots of arguments that those at the wealthier end of the scale exploit tax avoidance as a means to pay next to nothing for the sale of second homes, works of art and stocks and shared.
The top rate of income tax is 45% and 40% for people earning more than £50,000. The average CGT paid on the sale of assets in approximately 15%.
The Treasury played down the review, a follow up to examining inheritance tax last year, saying: “This is standard internal working. There is no expectation or plans for policy changes as a result.”
Nevertheless, in his letter to the OTS, Mr Sunak said he was particularly interested in “how gains are taxed compared to other types of income”.
What impact do you think this review will have on the sector?