{"id":21390,"date":"2021-09-09T13:39:56","date_gmt":"2021-09-09T13:39:56","guid":{"rendered":"https:\/\/smh.group\/?p=21390"},"modified":"2023-02-15T13:51:28","modified_gmt":"2023-02-15T13:51:28","slug":"capital-gains-tax-receipts-underline-tempting-target-for-chancellor","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/capital-gains-tax-receipts-underline-tempting-target-for-chancellor\/","title":{"rendered":"Capital gains tax receipts underline tempting target for Chancellor"},"content":{"rendered":"

New HMRC data shows that in 2019\/20, \u00a39.9 billion of capital gains tax (CGT) liabilities were created. <\/strong><\/p>\n

In July last year, the Chancellor unexpectedly asked the Office of Tax Simplification (OTS) to review \u201ccapital gains tax (CGT) and aspects of the taxation of chargeable gains in relation to individuals and smaller businesses\u201d. The top tax rate currently sits at 28% (limited to residential property and carried interest) with 20% liability for other assets.<\/p>\n

At the time, there was speculation that Rishi Sunak was looking at CGT as a way of raising extra revenue without breaking the Conservatives\u2019 2019 manifesto pledge not to increase rates for income tax, VAT and national insurance. With those receipts of nearly \u00a310 billion, it\u2019s certainly a tempting target.<\/p>\n

The OTS produced its first report on simplifying the design of the tax last November, prompting the rumour mill to forecast that CGT changes would appear in the spring Budget. However, CGT barely received a mention in March beyond the freezing of the annual exemption for five tax years at the 2020\/21 level of \u00a312,300. In May 2021, the OTS issued a second report examining \u201cpractical, technical and administrative issues\u201d of making changes to CGT.<\/p>\n

The focus for CGT announcements is now on the next Budget.<\/p>\n

New data released by HMRC in August shows why the Chancellor may be tempted to follow the OTS advice to:<\/p>\n