DOOM: CGT

[ChimpMaster]

Wouldn't CGT hikes on stocks destroy London as a financial capital of the world?

FTSE is already the dog of global stock markets


Here's an FT article without paywall:
Govt urged to overhaul capital gains tax in OTS review - FTAdviser.com

[TheGreenBastard]

FTSE is already the dog of global stock markets


Here's an FT article without paywall:
Govt urged to overhaul capital gains tax in OTS review - FTAdviser.com

I mean hikes for investment funds, hedge funds etc. operating out of London. It might make it uncompetitive (totally guessing they're effected).

[AtW]

CGT aligning with income tax will hit non-property assets harder. Gains on property are currently taxed at 18% or 28%, whereas gains on other assets (shares etc) are taxed at 10% or 20%.

So if the CGT rate is raised to 40%, there will be a 12% increase on property, but there will be a 20% increase for shares. This of course means that distributions from your own company will be taxed at income tax rates, where/if you don't qualify for BADR.

Top rate would be 45% and for property sales it would be possible to have one sale pushing into that territory - if they were “fair” they would at least factor it number of years of ownership rather than treating it a windfall in one year (which could lead to loss of personal allowance too).

Have no doubt they’ll do it, and Labour will adjust it to new 50% tax rate.