Coalition Capital Gains

By LBV

02 Jun 2010

The coalition government has plans to significantly increase the rate of capital gains tax (CGT) – and it may also adopt the Liberal Democrat proposal to cut the CGT annual exemption from £10,100 to £1,000.

Investors with substantial portfolios of property, shares, or other assets who have not protected them in tax shelters – such as ISAs or pensions – face the daunting prospect of losing up to half their gains in tax.

This could have a serious impact on long term or retirement funding plans.

What can you do if this affects you? Colin Tice of Cassons chartered accountants and business advisers explains:

Government proposals are vague… “We will seek ways of taxing non-business capital gains at rates similar or close to those applied to income, with generous exemptions for entrepreneurial business activities” and the timing of any changes remains uncertain. The only thing we can say with any certainty is that there will be an emergency budget on 22 June.

If you are planning to dispose of any assets you might do so now in case the proposed increase in CGT takes immediate effect. On the other hand, will changes be backdated to the start of this tax year – although such backdating seems unlikely.

Given the Tory commitment to rewarding marriage it might seem unlikely that any action will be taken to remove the tax free transfer of assets between spouses. This would therefore remain an important area for tax planning.

Investments through ISAs are free of CGT. The annual allowance is now £10,200 per person per tax year and the opportunity to shelter gains by investing through ISAs, or other tax efficient vehicles, might become significantly more valuable, although they will be of no benefit to property investors.

If you have a second home or other property investment and are thinking of selling, a sale before 22 June might be taxed at 18%, but after the rate may be 40% or 50%!

Speak to your financial adviser as soon as possible but as with any investment planning, tax is not the only factor to be considered. Unfortunately, significant changes to tax rules have an understandable influence on investment decisions.

Colin Tice, tax partner, Cassons.
 

Enjoyed this? Read more from LBV

Latest news

1

New road will drive Fylde’s economy forward M55 To Heyhouses Link Road Opening

New road will drive Fylde’s economy forward

23 Jul 2024

2

Partington's seeks permission to build £75m leisure destination Partingtons Windy Harbour Visuals

Partington's seeks permission to build £75m leisure destination

23 Jul 2024

3

Popular Accrington business says 'bon voyage' after 32 years Extreme owner Lisa Milburn is saying Bon Voyage after 32 years of business in Accrington Town Centre.jpg.jpg

Popular Accrington business says 'bon voyage' after 32 years

24 Jul 2024

4

Celebrating success: Promotions announced at Pierce Promotions.jpg.jpg

Celebrating success: Promotions announced at Pierce

24 Jul 2024

5

King’s Speech: key residential property updates Kings-speech.jpeg.jpg

King’s Speech: key residential property updates

24 Jul 2024

Bec Web Strip 980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference
BEC 315 X 315 Px
Networking
25 Sep 2024

Lancashire Built Environment Conference

Conference and Exhibition Centre, Winter Gardens Blackpool, FY1 1HL

08:30 - 13:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

Preston Freelancer MeetUp and Coworking Day
Screenshot 2024-06-13 at 13.55.10.png.png
LBV Hub Networking
30 Jul 2024

Preston Freelancer MeetUp and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Skills Bootcamp in Procurement - Cohort 1
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Seminars
30 Jul 2024 - 08 Oct 2024

Skills Bootcamp in Procurement - Cohort 1

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
31 Jul 2024

Chamber Breakfast Networking

Pye Motors, Morecambe, LA3 3PF

08:00 - 10:00

Scaling your revenue: From zero to £1m in 60 months
CBP-logo LBV.png.png
LBV Hub Webinar
31 Jul 2024

Scaling your revenue: From zero to £1m in 60 months

Online, Online, Online

08:00 - 09:30

Online Women's Health Clinic
clinic.png.png
LBV Hub Webinar
06 Aug 2024

Online Women's Health Clinic

x, Online, x

12:00 - 12:00

International Coworking Day Open Day
1.png.png
LBV Hub Social
09 Aug 2024 - 09 Aug 2024

International Coworking Day Open Day

Society1 Coworking Space, Prestin, PR1 3 LT

10:00 - 13:00

Knowledge & Networking: Basic Digital Marketing
Chamber Logo1.png.png
LBV Hub Seminars
12 Aug 2024

Knowledge & Networking: Basic Digital Marketing

Lancaster Golf Club, Lancaster, LA2 0AJ

14:00 - 13:00

Understanding Menopause
menopause.png.png
LBV Hub Webinar
15 Aug 2024

Understanding Menopause

x, Online, x

12:30 - 13:15

Sub36 Networking Event - The Bee Centre
Sub36 Socialbee Centre
Networking
15 Aug 2024

Sub36 Networking Event - The Bee Centre

The Bee Centre, Chorley, PR6 8LZ

15:00 - 17:00

Mini Networkers - Family Fun Morning
CBP-logo LBV.png.png
LBV Hub Networking
16 Aug 2024

Mini Networkers - Family Fun Morning

Community & Business Partners CIC, Blackburn, BB2 3UA

10:00 - 13:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin