Business News

Impending Capital Gains Tax Hike

Fears of a dramatic rise in the rate of capital gains tax now appear closer than ever to realisation.

The recently published coalition agreement between the Conservative and Liberal Democratic parties sets the objectives of the new government, stating........

"We agree to seek a detailed agreement on taxing non-business capital gains at rates similar or close to those applied to income, with generous exemptions for entrepreneurial business activities".

Whilst specifics and timing have still to emerge, the intent is clear and may be realised very soon given the Conservative promise of a budget within 50 days of them coming into office.

This means that capital gains tax on non-business assets will almost certainly rise from 18% to up to 50%, potentially very soon indeed!

It remains to be seen how much these proposed changes will affect business assets.

These changes will have greatest impact on trusts and individuals that own valuable assets pregnant with significant underlying capital gains. 

There are a number of strategies and approaches which can be taken for those who wish to seek to lock in accumulated capital gains at current tax rates and we would encourage you to review your asset holdings and contact our tax team at CW Fellowes if you believe such an approach would benefit you.

Contact either Matthew Harrison or Richard Green-Wilkinson on 023 8024 7070 or e-mail advice@cwfellowes.com.