This morning's Daily Telegraph says that the Chancellor is expected to "unveil" his reforms to MPs next Thursday.
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/01/18/ncgt118.xml
Marcella Shone
Replies (3)
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Are we going back a number of years?
I am surprised that the government is considering removing the link between income tax rates and capital gains. I seem to remember that a long time ago, the capital gains tax rate was less than the income tax rate. This resulted in people converting income into capital gains to take advantage of the lower tax rate (remember the toilet paper case and the Norman Wisdom case). So they invented indexation, to help with the, then, high inflation rates. But the capital gain was added to income, which meant that income tax rates were paid on capital gains. So there was less incentive to convert income into capital gains.
Prehaps in ten years time the government will reinvent indexation!!!!
Concessions on the cards?
What Darling will finally announce regarding CGT is what we're currently asking over on UK Business Forums, one of AccountingWEB's sister websites. Members have already put forward some interesting suggestions. Have your say here.
Dan Martin
Administrator, UK Business Forums