There’s been further discussion this week about what a review of Capital Gains Tax could look like – and the likely implications for business owners.
We don’t expect there to be any clarifications until next month’s Autumn Statement, but it’s almost certain that the rate of Capital Gains Tax (CGT) will be increased – with some commentators saying the worst case would be to bring it in line with Income Tax.
The Chancellor, Rishi Sunak, ordered a formal review of CGT in July, and by publishing his letter to the Office of Tax Simplification (OTS) – which also asked the OTS to report on how CGT compares with other taxes – fired a warning shot to businesses, to be prepared that changes may well be coming.
The two vital missing details at the moment are; what the increased rate is likely to be and when any change will come into force.
Although a date has not yet been announced for the Autumn Statement, it’s likely to be around the end of October/early November, and any changes, could, be effective either immediately or shortly afterwards.
Our advice is to review your plans, bearing in mind that the tax rates in place at the moment may not even be around by the end of this year or into 2021.
Please do contact the team at Inspire to discuss in more detail – we’re here to support you.