Just over a third (35pc) more people will pay Capital Gains Tax this year compared to last, according to analysis of Government figures by Skandia.
Government figures show that 260,000 people paid CGT in 2007. In 2008, this is expected to increase to 350,000, with the winners likely to be higher rate tax payers. People paying more CGT are likely to be those in the starting and basic rate tax bands or those with small gains which now become taxable due to the loss of taper relief. Skandia states that the reason more people will pay some level of CGT is due to the removal of indexation and taper relief, which effectively reduces the real value of the annual CGT exemption. Previously, through taper relief, clients holding assets for 1...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes