Capital Gains Tax (CGT) Reform
“The most important (and lucrative, from the chancellor’s point of view) is aligning CGT rates with much higher income tax rates.”
Raising CGT levels to mirror income tax bands could pull in £14 billion a year, according to the OTS. However, such a move would hit business owners, investors and second-home owners, who are typically Conservative voters, the hardest.
The OTS are also proposing reducing the threshold at which the Capital Gains Tax kicks in from £12,300 to £5,000.
What would this mean for your clients?
The reason we are seeing so many Members Voluntary Liquidations at the moment is down to concerns over the impending tax rises. Business owners are taking their cash reserves now while they can benefit from the more favourable tax rates.
There may only be a few months left to take advantage of the current CGT rates so if we can help you with your clients and their businesses, contact us for advice.