the budget and Capital Gains issues...
Discussion
Budgets don't usually have a big impact on me other than the usual 'big issues' ( price of a pint, price of a gallon, income tax rate etc ) but right now I am in the process of selling a commercial property that has been my business premises for the last few years. So the prospect of CGT going up to 20, 30 or maybe 40% is a big concern for me. Lot's of people are predicting this might happen, but I guess the is only one man that knows prior to the 24th March!
My questions to anyone that knows more about these matters than me ( that will be most of you ) are :
If CGT tax is increased in the budget, is the new rate likely to be effective on the 24th, or would the chancellor name a future date for the new rate to become operative?
Is the date of exchange, or completion the trigger date for the amount of tax payable? ( I can ask my solicitor this, but not till Monday Morning. And he charges me for every email / phone call answered! ) .
I am claiming 'entrepreneurial relief' which brings my CGT bill down from 18% to a lovely 10%, is this likely to be dropped ( this could be a question for a crystal ball though ) .
TIA, Noggin.
My questions to anyone that knows more about these matters than me ( that will be most of you ) are :
If CGT tax is increased in the budget, is the new rate likely to be effective on the 24th, or would the chancellor name a future date for the new rate to become operative?
Is the date of exchange, or completion the trigger date for the amount of tax payable? ( I can ask my solicitor this, but not till Monday Morning. And he charges me for every email / phone call answered! ) .
I am claiming 'entrepreneurial relief' which brings my CGT bill down from 18% to a lovely 10%, is this likely to be dropped ( this could be a question for a crystal ball though ) .
TIA, Noggin.
Personally I doubt they will do anything with CGT, they obviously only changed it a couple of years ago and IIRC that was a panic measure in response to a Conservative CGT policy. It was a huge issue at the time (especially for business owners) so I'd be amazed if they changed it. To increase it 30 or 40% they would probably have to bring back relief for business assets...and that would mean doing a huge 180.
Eric Mc said:
They DO have relief for business assets. These are taxed at 10% rather than 18% , provided the seller hasn't reached their lifetime threshold of business aseet sales of £1 million.
This is what they are calling 'entrepreneurial relief' ?Is this something that could change in the budget, and if so, would it change on the 24th March, or the 6th April, or some other date to be specified? And is the trigger date, the date of exchange, or completion, or when the sale was agreed?
As I said, I need to talk with my accountant and solicitor while I still have some fingernails left!
It is highly unlikely that the 10% CGT rate will disappear in this budget. As has been pointed out, it was introduced as an emergency measure when the Chancellor came under intense pressure following the 2008 budget - which initially introduced a flat 18% CGT rate on ALL disposals.
It would smack of incompetnece if he abolished it 18 months after introducing it.
It would smack of incompetnece if he abolished it 18 months after introducing it.
Edited by Eric Mc on Monday 15th March 09:21
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