Friday, Oct 12, 2007

Inflation to be taxed at 18%

Citywire: Outcry as pre-Budget report taxes older investors on inflation

The new CGT rules effectively tax inflation at 18% as CGT will be charged on the nominal gains in value rather than the real gains in value after inflation is taken into account. This means that you can face a tax bill on investments that you have actually lost money on in real terms. Anyone who has held an asset since the 1970s will be particularly punished.

Posted by ah-so @ 11:00 AM (382 views) Add Comment

2 Comments

1. dohousescrashinthewoods said...

Fiscal drag takes on a whole new set of teeth!
Even if it is adjusted for official inflation.

Friday, October 12, 2007 12:43PM Report Comment
 

2. M2 said...

Unless you plan on burying gold sovereigns in your back garden, it's another reason (as if you needed one) to take it all out of the country..

Friday, October 12, 2007 02:47PM Report Comment
 

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