Simply raising the rates of CGT ‘is not the right route to take’ to raise revenue for the Exchequer says the Institute for Fiscal Studies as it publishes a new research report co-authored with SenTax. Among the key findings identified in the Capital Gains Tax Reform report the following will make for interesting reading for the Chancellor:
3% of CGT taxpayers realised gains of more than £1m and accounted for 2/3rds of CGT revenue with the average gain for this group of 12 000 individuals coming in at £4m;
around half of taxable gains relate to unlisted shares in private businesses;
by discouraging saving investment and risk taking and ‘distorting who holds assets and for how long’ CGT reduces productivity and well-being suggesting that the design of the tax is flawed; and
reforms could include ‘more generous deductions for purchase costs and losses’ to...
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Simply raising the rates of CGT ‘is not the right route to take’ to raise revenue for the Exchequer says the Institute for Fiscal Studies as it publishes a new research report co-authored with SenTax. Among the key findings identified in the Capital Gains Tax Reform report the following will make for interesting reading for the Chancellor:
3% of CGT taxpayers realised gains of more than £1m and accounted for 2/3rds of CGT revenue with the average gain for this group of 12 000 individuals coming in at £4m;
around half of taxable gains relate to unlisted shares in private businesses;
by discouraging saving investment and risk taking and ‘distorting who holds assets and for how long’ CGT reduces productivity and well-being suggesting that the design of the tax is flawed; and
reforms could include ‘more generous deductions for purchase costs and losses’ to...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
