News
Earlier this year, the Chancellor called for a review of Capital Gains Tax (CGT), which will be undertaken by the Office for Tax Simplification (OTS), specifically focussing on aspects of CGT in relation to individuals and small businesses. The review is to cover:
- Overall scope of the tax and the various rates of CGT that apply.
- The reliefs, exemptions and allowances which can apply, and the treatment of losses.
- The annual exempt amount and its interactions with other reliefs.
- The position of individuals, partnerships and estates in administration.
- The position of unincorporated businesses and stand-alone owner-managed trading or investment companies (including the setting up, selling or winding up of such businesses or companies).
- How the CGT rules affect taxpayers’ investment decisions.
- Interactions with other taxes such as Income Tax, Capital Allowances, Stamp Duty Land (SDLT) Inheritance Tax (IHT).
It is therefore possible that the CGT landscape could change in the near future. Given the previous reduction to CGT rates in 2016, it is unlikely that the rates will reduce further.
The review is currently ongoing, with the deadline for providing the OTS with detailed comments on the above areas already having passed on 12th October. A date for the publication of the findings has not been set, however we will be keeping an eye out for the report when it is published.
The report will only provide recommendations for change and simplification of CGT. Any recommendations are not binding and must first pass through Parliament, although they will be considered in depth.
