The Potential for UK Tax Changes in 2021 - BBC Report

Tue 17 Nov 2020
The BBC Business Team has released an article concerning the potential for significant changes to UK capital gains tax in the coming year. A new report commissioned by the UK Government is currently under consideration with Chancellor, Rishi Sunak.

The article concerns a new report from the Office of Tax Simplification which suggests that capital gains tax could be brought more in line with income tax - or even doubled. 

The body suggested that the current rules were "counter-intuitive" and created "odd incentives". "The disparity in rates between capital gains tax and income tax can distort business and family decision-making and creates an incentive for taxpayers to arrange their affairs in ways that effectively re-characterise income as capital gains,". 

About £14bn could be raised by cutting exemptions and doubling rates, according to the review, which was commissioned by the current UK Chancellor Rishi Sunak. It comes as Chancellor Sunak looks for ways to cover the enormous costs of the coronavirus pandemic.

The main losers would wealthy people who own second homes or assets not shielded from tax.

Please note that this link will take you off the Collenette Jones website. BBC ownership of this article is acknowledged. 

BBC report (external link)


***

Collenette Jones

We are a Guernsey based firm of Chartered and Certified Accountants providing a high level of service to Bailiwick of Guernsey clients. We provide a total suite of accounting, assurance, tax, company formation and administration, payroll, pension and trust services under one roof.

Please contact us for a no obligation discussion of your accounting needs. Discover more about our accounting services and talented local staff team. If you are just getting started, try this overview of Accountancy on Guernsey.


Links

Key Calendar Dates - for accountancy on Guernsey
Accountancy - Frequently Asked Questions
Contact - Collenette Jones

 

 

Unsure of your next steps?
Contact our expert team.
© 2024 Collenette Jones Limited
ICAEW   ACCA   Xero Silver Partner
website by submarine