May 27th in Accountancy News, Accountancy Profession, Tax by Editor .

CGT Raise Plans Lambasted

Especially by Tory backbenchers…

Charles Tyrwhitt UK
 

But they’re not the only ones.

The details have not been made clear yet (in itself a cause for complaint). Firstly there’s been no confirmation as to what level the tax would go to from 18%, and for then there’s the rather vague assurances that entrepreneurs would still be protected from the clampdown. Which has pundits flustered.

Meanwhile, cabinet minister John Redwood and the former shadow home secretary David Davis have complained on behalf of investors who own shares, investment properties or other assets. Redwood argued in a letter to the Treasury, “It would damage the [tax] revenues and be unfair to anyone who saves, is prudent, or who ventures their money for the greater good.”

The main argument in favour of hiking capital gains, has been made by Vince Cable, the business secretary. He claims that it has become far too easy for taxpayers to dress up income (taxable at up to 50 per cent) as capital gains (on which tax is only payable at 18 per cent). But Allister Heath at CityAM cites some serious flaws in this view stating that “There are undoubtedly abuses – but it is simply not true that most investors are able to do this.”

So, whilst the powers that be argue the toss, there is already a scramble on to escape an potential rises.

Imagine the heat as this is debated in cabinet.

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