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Highest Capital Gains Tax In The World

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Massive propaganda drive by the tiny minority who own more than one property. If you want to invest, invest in businesses or buy share's via an ISA.

Speculating on property is not investing; its gambling, following the herd and depending on the taxman making it viable.

Here's another; In the Torygraph's self pronounced campaign -

Politics of Envy

Somebody point out - "those who destroyed the UK's economy should be taxed to repair the damage".

Here's another - Torygraph attacking the Lib-Dems

Treasury Minister David Laws 'should step aside'

Edited by Peter Hun

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Massive propaganda drive by the tiny minority who own more than one property. If you want to invest, invest in businesses or buy share's via an ISA.

Speculating on property is not investing; its gambling, following the herd and depending on the taxman making it viable.

Here's another; In the Torygraph's self pronounced campaign -

Politics of Envy

Somebody point out - "those who destroyed the UK's economy should be taxed to repair the damage".

I don't invest in property, but I invest in shares, in excess of what I can place in ISA's. At 40% my investment goes elsewhere.

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Am I missing something here?

The Tories under Mrs Thatcher and Nigel Lawson equalise the rates of income tax and Capital Gains Tax as a matter or principle. Not a murmour is heard about this being a disincentive to investment.

A decade or so later Labour under Tony Blair and Gordon Brown tinker around with a system that has worked perfectly well until then.

A couple of years after that the Tories change it back again.

The Tory right wing and their friends in the media are then up in arms in defence of a brief change in tax rates brought in by a discredited Labour government and in opposition to the new government revertying things back to the old Tory rates.

You couldn't make it up. The stench of naked self-interest is nauseating.

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High capital gains tax is an excellent way to drive investment. Productive investment depends on the long term allocation of capital with returns primarily arriving from long-term returns on that investment, i.e. dividends.

There is a case for low CGT on new start-up business which depend primarily on capital gains for the risks taken by investors, however the VC funds which they are dependant upon are already CGT free.

Hence there is absolutely no reason why shares for companies such as coca-cola or microsoft should be CGT free, unless of course your a speculator dependant on short term gains in share prices which higher CGT will hammer.

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Oh just ignore Boom Boom - on some sort of 1 person crusade against CGT resuming its long term trend rate.

Mods - you might like to keep an eye on how many CGT threads BB is starting/flaming.

Says 'bear' on profile. Hmmm..

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Am I missing something here?

The Tories under Mrs Thatcher and Nigel Lawson equalise the rates of income tax and Capital Gains Tax as a matter or principle. Not a murmour is heard about this being a disincentive to investment.

A decade or so later Labour under Tony Blair and Gordon Brown tinker around with a system that has worked perfectly well until then.

A couple of years after that the Tories change it back again.

The Tory right wing and their friends in the media are then up in arms in defence of a brief change in tax rates brought in by a discredited Labour government and in opposition to the new government revertying things back to the old Tory rates.

You couldn't make it up. The stench of naked self-interest is nauseating.

The plans being mooted are 40%, no taper, very small allowance (circa £2k), and not linked to your actual income tax rate. So you could be earning 10k a year in a job and make 20k a year on the stock market, 18k of it will now be taxed at 40%.

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Oh just ignore Boom Boom - on some sort of 1 person crusade against CGT resuming its long term trend rate.

Mods - you might like to keep an eye on how many CGT threads BB is starting/flaming.

Says 'bear' on profile. Hmmm..

2nd homes can be subject to 100% capital gains for all I care, they represent corrosive deployment of capital. I'm concerned about legitimate investment activity being punished the same way as housing market speculation.

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I don't invest in property, but I invest in shares, in excess of what I can place in ISA's. At 40% my investment goes elsewhere.

The rest of us have to work for a living. It's called a salary ;)

Does this explain your incessant posts, moaning that UK employers won't pay people in IT the amount that your sense of entitlement means you feel you are "worth"?

Is that the problem here? No-one is prepared to pay you enough money to do something that could easily be outsourced to India, so you've now got a problem that you're going to be taxed to speculate over here?

Interested in your thoughts.... But your posting history would seem to make sense now :ph34r:

B

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... but I invest in shares, ....

The word you are looking for is "speculate". The price you buy the shares at to gamble they go up does not help the company, its not new capital for them to use to buy machinery or other productive expenditure. Your punt might bring you a few quid but it also encourages the company to take short term decision (often to its long term detriment) that are anything but beneficial to the employees and customers. Its right and proper that speculation by share trading is discouraged and if CGT discourages it so much the better.

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The plans being mooted are 40%, no taper, very small allowance (circa £2k), and not linked to your actual income tax rate. So you could be earning 10k a year in a job and make 20k a year on the stock market, 18k of it will now be taxed at 40%.

So are we to believe that you'd be happy with CGT being inflation indexed and matched up with income tax so it is charged at the same rate as your earned income?

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The rest of us have to work for a living. It's called a salary ;)

Does this explain your incessant posts, moaning that UK employers won't pay people in IT the amount that your sense of entitlement means you feel you are "worth"?

Is that the problem here? No-one is prepared to pay you enough money to do something that could easily be outsourced to India, so you've now got a problem that you're going to be taxed to speculate over here?

Interested in your thoughts.... But your posting history would seem to make sense now :ph34r:

B

I'm not even involved with IT, I just think declining wages across the board are a concern

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CGT on property in France is 28.1% but only if you sell before 5 years. After that the GCT liability is reduced by 10% per year (ie 2.81%) until year 15 when no CGT is due. I was thinking of buying a property in the UK when prices fall to sensible levels but at 40% CGT the numbers might no longer stack up. I'll probably buy a nice village house in France instead for about the price of a 1 bed flat in suburbia. CGT rising should release more properties for ftb's as btl becomes less attractive.

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The plans being mooted are 40%, no taper, very small allowance (circa £2k), and not linked to your actual income tax rate. So you could be earning 10k a year in a job and make 20k a year on the stock market, 18k of it will now be taxed at 40%.

Sounds fair enough to me.

Stock market speculators are parasites who contribute nothing to the companies whose shares they play with, or to society in general.

Genuine investors who hold shares long-term should be rewarded with some kind of taper relief or indexation. This, it is clear from Vince Cable's comments on Any Questions, is to be announced in the budget.

Short term speculators should be squeezed until the pips squeek.

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So are we to believe that you'd be happy with CGT being inflation indexed and matched up with income tax so it is charged at the same rate as your earned income?

Not especially, but it would be an improvement over what seems to be on the table. All the evidence shows incontrovertibly that higher capital gains tax results in a dramatic drop in the amounts collected.Given this fact why are people so desperate to push through a move that will only worsen the fiscal position of the country?

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Sounds fair enough to me.

Stock market speculators are parasites who contribute nothing to the companies whose shares they play with, or to society in general.

Genuine investors who hold shares long-term should be rewarded with some kind of taper relief or indexation. This, it is clear from Vince Cable's comments on Any Questions, is to be announced in the budget.

Short term speculators should be squeezed until the pips squeek.

Cable has voiced an objection to any kind of taper. He wants 40%+ if you've had the shares for 1 month, 1 year or 10 years. Just another left wing crackpot I'm afraid.

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Not especially, but it would be an improvement over what seems to be on the table. All the evidence shows incontrovertibly that higher capital gains tax results in a dramatic drop in the amounts collected.Given this fact why are people so desperate to push through a move that will only worsen the fiscal position of the country?

So you don't want capital gains taxes at the same rate as wages, you want them taxed at a lower rate. Sounds like pure self interest. Nobody likes paying tax, but we still have to do it.

Also the line about higher CGT resulting in a lower take smells like week old pollocks to me, an unprovable and implausible assertion of the 'thanks to trickle down, if we tax the rich lightly then the poor will be the real winners' variety.

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The article is mesileading on several fronts. I will deal with one - It's not true that investment was driven away by CGT as set up by Lawson in 1987-8. There was a stock market crash in 1987 which was responsible for a large drop in the actual amount of tax being paid because LOSSES AND NOT GAINS were being made. Then followed a house price tumble. So the article is attributing the fall in revenue to the tax when it was the markets themselves dictating this. Investment from abroad increased dramatically after the recession was over and the UK was in a good position by 1997, with the same tax on CGT until 2007.

We need to pay off the deficit and not have second home owners and Buy to let folk stop a necessary 'rebalancing' of our economy. Those assets in particular have enjoyed a tax status which they do not deserve and which creates no real wealth. In fact their benign treatment has contributed to the property bubble and damaged our economy, pumping it up, increasing borrowing/lending, and allowing people to treat property as some remortgagable private ATM. Then the 'booty' of false wealth is spent on imports because we hardly make anything, thus ruining our balance of payments.

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So you don't want capital gains taxes at the same rate as wages, you want them taxed at a lower rate.

Boom boom, it would be very interesting to read your answer to that.

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Not especially, but it would be an improvement over what seems to be on the table. All the evidence shows incontrovertibly that higher capital gains tax results in a dramatic drop in the amounts collected.Given this fact why are people so desperate to push through a move that will only worsen the fiscal position of the country?

Your missing the point, the amount of tax collected is tbh irrelevant. What IS important is that it drives investment towards the long term away from the short term. i.e. a CGT of 40% that is inflation indexed but with no tapering.

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Boom boom, it would be very interesting to read your answer to that.

Investment involves risk. Unless the state is offering to refund any losses I make, I don't see why it should help it self to any profit.

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I own a small business and I'm actually pleased to see changes to the CGT arrangements.

I earn my money by working for a living... my salary is taxed as income. Why should some greedy tw@t who can afford 2, 3 or 4 extra houses get a cash subsidy from me?

BTL and property speculation in general are extremely bad for our economy.... instead of building a proper economy we've been subverted into being a rental cash cow for wealth people who own domestic and commercial property.

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