CGT rate rises to 28% from 22 June
Chancellor George Osborne confounded tax experts by announcing an increase in the rate of capital gains tax from 18% to 28% from midnight on 22 June, writes tax editor Rebecca Benneyworth.
How HMRC and tax advisers will deal with the different rates on capital gains during the current tax year will be a matter of some concern.
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Will this affect the 50% tax rate?
As capital gains will once again be treated as the top slice of income for tax purposes, will this also have an effect on the definition of income for the new 50% rate? I may be wrong about this, but as I understood it before capital gains were not part of the equation for deciding whether your income was over £100k. Does this change with the post 22 June CGT regime? If so, will gains between 5 April and 22 June will be caught by this too?
Chris F
Very limited planning window
Did any readers' clients pop down to see their solicitor this afternoon to transfer non-businbess assets to a settlor interested trust? This must be the shortest planning window ever!
Actually the rate goes up from 23rd June not the 22nd as the title suggests.