Just when business owners thought it could not get any worse...

摘要

The report, the first to consider Capital Gains Tax (CGT) specifically, was undertaken in response to the Chancellor's request 'to identify opportunities relating to administrative and technical issues as well as areas where the present rules can distort behaviour or do not meet their policy intent.' Simply put, the Government is looking for new sources of tax revenue to replace the billions spent on addressing the coronavirus pandemic. In the current climate, it looks like targeting wealth creators will be the likely route, so business owners should expect some impact. The OTS report makes suggestions that will fundamentally change the capital gains tax rules in the UK if adopted and any outcry proves no deterrent. One suggestion is to align CGT rates with income tax rates, which will significantly increase the tax paid when a business is sold.