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The Masked Tulip

Tax-Cutting Blow As Cgt To Raise £1.5Bn Less Than Planned

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George Osborne faced a fresh blow over capital gains tax today after it emerged it is due to raise £1.5 billion less than expected.

The surprise forecast makes it much harder for the coalition to use a planned rise in CGT to deliver on a Liberal Democrat promise to cut income tax.

The Office for Budgetary Responsibility today downgraded the forecast for the amount of money the tax on second homes, buy to lets and assets will raise.

After raising £300 million more than expected next year, in 2012-13 it will raise £800 million less than expected, £600 million less in 2013-14 and £400 million less in 2014-15.

The report says: “The forecast for CGT is lower than in the March Budget, mainly because of lower forecasts of equity prices and volumes and a lower volume of residential transactions.”

This leaves a £1.5 billion black hole - even before the expected rise in Capital Gains Tax due in next week’s budget.

This means it will almost impossible for a CGT rise to generate revenue which can be used to pay for the Lib Dem plans to raise the income tax starting threshold towards £10,000.

http://www.timesonline.co.uk/tol/news/politics/article7149784.ece

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I have a cunning plan. They should apply CGT to all nominal gains on at property valuation, not just those realised by sale.

No problem for people who just have a second home by the coast.

Unless they use an uplift in it's value to finance another purchase, in which case that uplift in value is taxed.

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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