Jump to content
House Price Crash Forum
Sign in to follow this  
Boom Boom

This Is Why A Cgt Rise Is Pointless

Recommended Posts

A string of share deals worth nearly £400m were disclosed yesterday as company executives scrambled to sidestep a feared rise in capital gains tax in today's Budget.

Business leaders unloaded huge shareholdings, calculating that the current 18pc CGT rate is bound to soar.

Observers believe Chancellor George Osborne could increase the rate to 40pc. Executives sitting on large paper gains in their investments want to pocket their winnings now rather than wait and pay a higher tax bill later.

I must be confused.

For a minute I was thinking that these people just gave Mr Osborne an 18% windfall.

Share this post


Link to post
Share on other sites

I dont see why this proves a cgt rise is pointless, if anything I think it shows why it makes sense

What we have here is a few individuals trying to shift wealth around in order to lessen their tax burden in anticipation of a rise in cgt

What the chancellor is seeking to avoid is their being any benefit in shuffling wealth around so as to reclassify it into a lower tax rate, what the chancelor wants to do is ensure all forms of tax are treated equally rather than at present where cgt is the lowest rate so many forms of tax planning seek to reclassify income into cgt to pay tax at a lower rate, what we see here is the last bit of reshuffling which may or may not work for the shufflers ...

the priorities of the chancellor should be

1- to harmonize tax rates so the system cannot be gamed

2 - cut expenditure as much as possible

3 - when the public finances permit to lower the harmonized rate as much as possible

Unfortunately given the profligate nature of the previous government 3 will be a long time in coming ...

It seems the chancellor has had a lot of pressure to allow the system to continue to be exploited but to his credit he is taking the ethical stand and not bowing to these self interested pleas

Share this post


Link to post
Share on other sites

CGT rises will act principally as a BTL and multiple home deterrent. It will balance the market making homes cheaper down the road and hopefully putting and end to one of Brown's most socially damaging policies.

As austerity bites and unemployment rises many BTLers and multiple home speculators will be forced to sell on a depressed market and this will add momentum to the long overdue correction.

Share this post


Link to post
Share on other sites

CGT rises will act principally as a BTL and multiple home deterrent. It will balance the market making homes cheaper down the road and hopefully putting and end to one of Brown's most socially damaging policies.

As austerity bites and unemployment rises many BTLers and multiple home speculators will be forced to sell on a depressed market and this will add momentum to the long overdue correction.

Plus lower housing costs mean that higher basic-rate tax can be levied further don the line, along with reduced HB.

Share this post


Link to post
Share on other sites

Silly billy... CGT being lower than other types of tax makes it an automatic loophole. Whilst raising it back to where its been and in line with other taxes may reduce the revenua from CGT it will also raise the revenue of other taxes equally.

You would be amazed how well the big companies can take advantage of any tax rate that is lower. They have accountants specficially paid to do that.

This is a tax avoidance that was stupidly opened by Labour a few years ago and should never have been allowed in the first place (unless all earnings rates came down in line with it)

Share this post


Link to post
Share on other sites

Silly billy... CGT being lower than other types of tax makes it an automatic loophole. Whilst raising it back to where its been and in line with other taxes may reduce the revenua from CGT it will also raise the revenue of other taxes equally.

You would be amazed how well the big companies can take advantage of any tax rate that is lower. They have accountants specficially paid to do that.

This is a tax avoidance that was stupidly opened by Labour a few years ago and should never have been allowed in the first place (unless all earnings rates came down in line with it)

Cant argue with this one.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 138 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.