Content
Winter Of Discontent
CGT Winners
CGT Losers
Shifty Business
Anything To Declare?
Long Arm Of The Law
Irreplaceable You
Earn As You Pay
Ask Questions Later
Capital Ideas
ISA ISA ISA
Referee!
Go Green
VAT Or No VAT?
Taking The Register
Close Encounters
May Contain Nuts
Going Concern
Ancient History
Business And Pleasure
Do Your Duty
Know Your Rights
Time To Go?
Passing The Buck
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Last October Mr Darling announced that he would simplify CGT by bringing in a flat rate of 18% and abolishing taper relief and indexation. This is good news for the people who would have paid at more than 18% anyway - higher rate income taxpayers who don't have investments they have owned since before April 1998 (so they won't lose indexation allowance) and who don't have "business assets" for taper relief (on which the rate of CGT was generally 10% after two years). For example, if you have owned a buy-to-let property since May 1999, on 5 April 2008 your CGT rate on a gain would probably be 28%. On 6 April you will pay tax on the same gain at 18%. And the rules for dealing with investments in shares will become much simpler to operate. At least he has announced one "sweetener" for some of those who would have lost out - the 10% rate will be retained for £1m of gains for people selling a business that they have been running. The so-called "entrepreneur's relief" will be available after the business has been owned for one year, and there will be no minimum age limit on the sale - but the £1m is a limit for your lifetime, not for each successive sale. So those people could be better off, or no worse off, under the new rules. If you are likely to benefit, it's worth waiting until after 5 April to trigger disposals for CGT. If you are thinking of selling an investment property or quoted shares, consider delaying the sale to take advantage of the lower rate. If you are not sure whether the changes are good or bad for you, we'll be happy to check.  |