FSL Chain Mail (7th September 2020)
FSL’s Chain Mail is a regular blog containing links to news articles that we think are worth sharing.
As we wait for the Office of Tax Simplification to complete its review of Capital Gains Tax, with the possibility of an interim report at any time, this edition focusses on what the outcome may include.
A recent article from Neil ManGillivray for Professional Adviser suggests that worries about an increase to CGT are unnecessary. Examination of previous reviews by the OTS show that they offer recommendations and advice to the Chancellor that have so far rarely been implemented. Another view posed in Accountancy Age, looks at the possible impact on business owners planning to sell up.
The Chartered Institute of Taxation has participated in the OTS’s survey by raising a number of concerns that they would like addressed as part of the review. These include minimising any potential consequences of changes to the scope of CGT on other taxes such as income tax and IHT; and increased recognition of regular income versus capital gains on long-held assets.
With the OTS consultation inviting comments until mid-October it is unlikely that the review will report before the Autumn Budget. Though reports highlight that the amount of CGT received by HMRC increased by 6% in 2019, an opinion piece in the FT suggests that raising taxes now would only hamper recovery. They state that public finance sustainability should not begin until Coronavirus is controlled and that “Good economics is good politics. Good economics says now is the time to wait.”
Look out for our next edition with more FSL Chain Mail links.