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Osborne Faces Rebellion If Cgt Goes Over 25%

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Guest The Relaxation Suite

Only Nixon (a staunch Republican) could go to China

Nixon had a lot to recommend him you know. His whole reputation was ruined by Watergate, but a new wave of revisionist historians is starting to look at some of his successes as well. But yes, only NIxon could go to China, indeed!

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As long as he brings it in end of feb 2011, I dont care if he raises it only 1 % - the BTL'ers are looking for any excuse to jump ship.

Edited by sbn

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"It has always been my intention to keep CGT at the 25% level and by allowing speculation to run riot with fears of higher rates any opposition will accept government policy as if it were a climbdown when, in fact, it is not."

If we could read George's mind.

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I cant help wonder what the reaction would have been on these boards and elsewhere if a Labour govt tried restoring 40% cgt.,

IMO as far as this board is concerned this is a policy that may help to bring about hpc. It would have been supported regardless of who had proposed it.

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IMO as far as this board is concerned this is a policy that may help to bring about hpc. It would have been supported regardless of who had proposed it.

There is no way Brown would have done anything to slow property speculation/inflation. His whole ethos and legacy was reliant on HPI.

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There is no way Brown would have done anything to slow property speculation/inflation. His whole ethos and legacy was reliant on HPI.

I agree. I suspect a more traditional labour government would never have reduced CGT in the first place. It's almost perverse that new labour reduced a tax that a right wing government had set at 40% (albeit with inflation factored in). Another example of how the world went mad under Brown's economic stewardship.

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I don't believe that many Tories would want to vote down the budget and force another election. Some of them maybe, who think they could get a majority but all the new MPs? I doubt it, I think they're bluffing. Wee Georgie may cave though, I think he'll go for 30%, with tapering. He can justify the increase and then still crow about the fact that it's lower than the Labour govt had if for 11 of their 13 years.

99.7% of people don't pay CGT accoridng to Paul Lewis who does Moneybox on R4. (Just been on the TV news). Only 130k paid it last year apparently, and only 250,000 have a 2nd home. They're going to discuss why the huge news coverage about it.

Edited by deflation

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99.7% of people don't pay CGT accoridng to Paul Lewis who does Moneybox on R4. (Just been on the TV news). Only 130k paid it last year apparently, and only 250,000 have a 2nd home. They're going to discuss why the huge news coverage about it.

It's because it's only likely to effect boomers, who have all the power at the moment. Also, the people in the media are likely to be well off so might be one of these people who have multiple houses.

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I don't believe that many Tories would want to vote down the budget and force another election. Some of them maybe, who think they could get a majority but all the new MPs? I doubt it, I think they're bluffing. Wee Georgie may cave though, I think he'll go for 30%, with tapering. He can justify the increase and then still crow about the fact that it's lower than the Labour govt had if for 11 of their 13 years.

99.7% of people don't pay CGT accoridng to Paul Lewis who does Moneybox on R4. (Just been on the TV news). Only 130k paid it last year apparently, and only 250,000 have a 2nd home. They're going to discuss why the huge news coverage about it.

Amazing how many on here think that a bit of CGT on BTLers and a million or so investers is going to solve our debt problems. There is only so much to take. Its the cost of our state spendind and overall tax take that is the problem. Raising CGT isnt going to prevent us all becoming porrer.

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Amazing how many on here think that a bit of CGT on BTLers and a million or so investers is going to solve our debt problems. There is only so much to take. Its the cost of our state spendind and overall tax take that is the problem. Raising CGT isnt going to prevent us all becoming porrer.

nah, we just think that a big hike in capital gains might help with an hpc. Nothing to do with sorting out the debt mountain

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I don't get why they want to raise CGT it is quite a small tax at the end of the day.

If you just raise CGT you:

damage investment in the economy

& reduce the revenue you collect

Thankfully they know this, so it looks likely there will be some sort of taper or other relief to punish speculation but reward investment.

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It's because it's only likely to effect boomers, who have all the power at the moment. Also, the people in the media are likely to be well off so might be one of these people who have multiple houses.

Why is that then. Most BTLers are not boomers. Plenty of younger people have investments. CGT will not effect their private residence. Or hopefully not.

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nah, we just think that a big hike in capital gains might help with an hpc. Nothing to do with sorting out the debt mountain

Well it wont, or not much anyway. If you coudnt afford one before you are not likely to do in the future just because cgt goes up.

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How about just raising CGT on property and not on business assets, as well as closing the loopholes around property companies? That wouldn't damage investment in the economy, in fact it would boost it by shifting investment from non-productive assets towards productive ones. Blindingly simple

I don't get why they want to raise CGT it is quite a small tax at the end of the day.

If you just raise CGT you:

damage investment in the economy

& reduce the revenue you collect

Thankfully they know this, so it looks likely there will be some sort of taper or other relief to punish speculation but reward investment.

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Well it wont, or not much anyway. If you coudnt afford one before you are not likely to do in the future just because cgt goes up.

Fair point. However, it is the first policy I can think of in more than 10 years that works against, rather than for HPI. Small steps and all that...

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How about just raising CGT on property and not on business assets, as well as closing the loopholes around property companies? That wouldn't damage investment in the economy, in fact it would boost it by shifting investment from non-productive assets towards productive ones. Blindingly simple

Blindingly simple? Since when has property not been part of the ecomomy. Ant alterations to any tax will have an effect on that part of the economy effected. And property is a huge part. Like it or not.

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But wouldn't a rebellion lead to the coalition to collapsing sending markets into a tailspin, soaring interest rates, etc?

Most likely. This is all much more complicated than a bit of a tax hike on enterpreneurs and boomers. We wont win whatever.

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Osbourne is weak, weak weak.  If he can't push through the increase t 40% he should resign.

A bit early to say that. He has a balancing act, as always. This isnt a life changing tax. He will need to keep everyone onside id we are to get out of the mess.

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I don't get why they want to raise CGT it is quite a small tax at the end of the day.

If you just raise CGT you:

damage investment in the economy

& reduce the revenue you collect

Thankfully they know this, so it looks likely there will be some sort of taper or other relief to punish speculation but reward investment.

It's a moral point for the Lib Dems. Capital gains is unearned income. Is it morally right that you pay less tax on gains from doing nothing than you do do from working?

It would have the added advantage of reducing the damaging effects of short term speculation.

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Osbourne is weak, weak weak.  If he can't push through the increase t 40% he should resign.

Agreed. The problem is not how much moey it raises, I think it is an appropriate way of closing off tax avoidance, but on whom it falls.

It is the Tory Association members who will feel most agrieved. These are the foot soldiers, the leaflet posters and the money raisers.

As the Coalition wobbles, Osbourne has to keep these people onside. Libdems are secondary, of corse.

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