So who will pay the new capital gains tax rate?

So who will pay the new capital gains tax rate?

The chancellor has announced that the headline rate of Capital Gains Tax will be cut from 28% to 20% and CGT paid by basic rate taxpayers from 18% to 10%.

The government is also introducing a brand new 10% rate on long term external investment in unlisted companies, up to a separate maximum of £10 million of lifetime gains.

David Gibbs, Partner at Alliotts Accountants in London said: “So Who Will Pay the new rate of Capital Gains Tax?  Not the buy to let investor, as the Chancellor’s paranoia towards hard working middle England investors continues as he announced cuts to the main rate of capital gains tax but specifically excluded gains on buy to let properties. The extra stamp duty on purchase and the withdrawal of tax relief on mortgage interest payments was repeated, leaving the 250,000 buy to let investors in the South East feeling out in the cold.

But capital gains tax on the sale of shares in private companies will apply to all investors for shares acquired from 17 March - previously you had to be an employee and own at least 5% of the business to get this rate.So, who’s left to pay the new rate of 20%? I guess that’s those with large listed share portfolio’s and financial investments.

I wonder if they know George?”


George Osborne said:"Our Capital Gains Tax is now one of the highest in the developed world, when we want our taxes to be among the lowest. The rates will come into effect in three weeks’ time. The old rates will be kept in place for gains on residential property and carried interest."

Tina Riches, national tax partner at Smith & Williamson, commented: "Not all investors or businesses count for the lower entrepreneurs’ relief rate, so the general reduction in CGT rates for higher rate taxpayers from 28% to 20% will encourage further investment in companies, helping to boost investment for those not eligible for entrepreneurs’ relief. Ultimately, this reflects the Chancellors leaning towards the enterprise economy, partly at the expense of owners of buy to lets and second homes.
 
Basic rate taxpayers will also benefit where investment meets the Chancellor’s criteria, with a rate drop from 18% to 10%, providing help for those with large share portfolios who may be hit from April 2016 by the higher taxes on dividends. This is likely to mean taxpayers reconsidering their portfolios."

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

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Dianne Griffen
Dianne Griffen 29 Jun 2017

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jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

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