Wednesday, May 12, 2010
So it begins. Open you wallets folks.
City Wire: CGT to rise
CGT on that second home now 40%. IHT to remain unchanged. Gordon, missing you already.
Posted by chrisch @ 08:56 AM (2094 views) Add Comment
18 Comments
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1. p. doff said...
Somebody 'fat fingered' on the forward slashes?
2. p. doff said...
Government wants 40% of your profit on your gold.
Better dump the bullion and buy some sovereigns.
3. jack c said...
As the link isnt working
An increase in capital gains tax will be at the heart of a package of reforms agreed by the new coalition government led by prime minister David Cameron. The CGT paid on ‘non business’ assets such as shares and second homes, currently a flat 18% rate, is likely to rise close to the 40% rate of income tax. In return, the Tories have agreed to a Lib Dem proposal to raise the income tax exemption to £10,000, which is likely to take place in April 2011. This will be paid for by not going ahead with the previously proposed Tory reversal of Labour plans to increase the employee element of the national insurance contributions; the reversal of the Labour plans to increase employer’s national insurance will go ahead. It is said to be unlikely that the Tories will go ahead with plans to raise the threshold at which inheritance tax is paid to £1 million. Equally, the Lib Dems have had to drop their proposals for a ‘mansion tax’ on properties worth more than £2 million.
Tory plans for a £150 marriage tax break for middle and low income earners will go ahead.
The new chancellor George Osborne will hold an emergency budget within 50 days in which he will have to set out the plans to tackle Britain’s huge deficit.
4. hpwatcher said...
Government wants 40% of your profit on your gold.
Better dump the bullion and buy some sovereigns.
Gold is exempt under EU rules.
5. Crunchy said...
Tax???
Tech are you looking @ euro/usd? Could be a time for a long long mate.
6. doomwatch said...
Can't imagine the Tories liking this one little bit.
7. inbreda said...
I think the lib dems have truly screwed it up this time. After decades being hidden in the distant background they are now highly visible at the start of a few years where the government is going to have to be blamed for all of the problems caused by new liebour. They should've just insisted on PR before entirely handing the reigns over to Cons and sitting back to watch the show. Let the Tories make all of the deeply unpopular decisions and romp it home in the next electionwith a fresh agenda.
But at least the CGT increase will lead to a flood of properties onto the market at a time when that was already happening. Let teh carnage begin.
8. inbreda said...
is it me or is P Doff very confused?
9. doomwatch said...
inbreda . Agree, total own goal.
Those wishing to cash out ahead of the 2nd homes super tax have 50 days & counting before the emergency budget kicks in. Or, at
best till 05 April 2011.
10. debtfree said...
@4 hpwatcher
do you have anymore info on EU rules ?
I was under the impression only British Sovereigns are tax free.
11. mark wadsworth said...
Inbreda "the CGT increase will lead to a flood of properties onto the market.."
Only in the very short term, for people who reckon they can sell in the next 50 days (and some tax law is retrospective). Thereafter, there will be far fewer sales, as people would rather have a houose "worth" £200,000 than £120,000 in the bank (OK, that's assuming it was bought decades ago for very little money).
@ hpw, df, are you confusing VAT with Capital Gains Tax?
12. hpwatcher said...
@ hpw, df, are you confusing VAT with Capital Gains Tax?
There are British Sovereigns but also other types of bullion coins, not forgetting the foreign ETF's of course.
(Don't know about anybody else, but having to type the security words in are an absolute pain)
13. 51ck-6-51x said...
hpwatcher said, "Don't know about anybody else, but having to type the security words in are an absolute pain"
- Yes, I have sent feedback by email, think it's redundant for those using an admin password for a start, also don't really think there is a need for it anyway.
Please do the same! (bottom of page -> Contact us)
14. timmy t said...
As MW says, knowing the way people think about houses in this country I suspect this would have completely the wrong effect. Vendors would no doubt demand their net £200K so put on the market for £333K.
15. mystie010 said...
Just working out if I need to type in the words at the bottom of the screen. Nope I don't like this new type it here box - Administrators this is definitely going to put me off posting - not that I ever had very much constructive to say anyway, so maybe it's a good thing?
16. Catman said...
Both libs and cons planned to abolish HIPS in their manifestos. IMHO the HIPS strangled supply more than given credit for. Devised by Brown who probably saw the crash coming at the most inconvenient time for him.
It does look like the lib/cons plan is to get more properties on the market - CGT and hopefully a HIPS revision.
17. p. doff said...
@ 4 As I understand it, gold bullion is exempt from VAT, but it is NOT exempt from CGT.
I also understand that gold coins which are denominated in sterling may be exempt from CGT (provided they are legal tender). This may include some (but not all) sovereigns, but would exclude e.g krugerrands.
@7 I think it's you! - See http://www.taxfreegold.co.uk/capitalgainstax.html - but I concede this is not a definitive source.
18. titaniccaptain said...
@P.Doff and HPWatcher
I may be wrong but I think all gold sovereigns and British gold coins older than 1870something are CGT free.
Will the price of Sovereigns break away from the Spot price of gold and go higher?
That is the question.
You always loose when you buy Sovereigns in bulk as I have found out because of the difference between buying and selling price.....unless you sell in small quantities privately.
But after you soak up that initial fall in value from there in its clear profit tax free.
Tally ho!