Covid-19 Update: We are continuing to provide our usual services whilst maintaining the safety of clients and colleagues. Read our latest update here.

Complete the form below to ask us a question or make an enquiry. We’ll get back to you via phone or email as soon as possible.

Insights

Potential rise in Capital Gains Tax rates

Posted on 11th January 2021 in Later Life Planning

Posted by

Rachael Morley

Partner & Solicitor
Potential rise in Capital Gains Tax rates

Speculation is increasing that the Chancellor’s next Budget will see a rise in Capital Gains Tax rates. According to a recent Canada Life poll of 2,000 adults across the UK, 83% of advisors expect some form of change to Capital Gains Tax, with 38% anticipating a rise to the same levels as income tax.

At the moment, Capital Gains Tax rates vary between 10-28%, depending on the taxpayer and the type of asset involved. In the past, CGT levels have been as high as 30%, or set at the same rate as income tax.

It is this change which advisors see as most likely to happen, following a report from the Office of Tax Simplification. If any such changes are put into force, Capital Gains Tax will, for many people, be charged at 40% or possibly even 45%.

A recommendation is just that and there is no guarantee that these changes will be made. With the costs of Covid to the country rising and the government looking for funding, though, it would be worthwhile considering your tax position. Any gifts or exchanges of CGT-burdened assets might be something to think about in the next month or two.

 

For any help with tax and later life planning please contact our dedicated team, or for more information visit our tax and later life planning page.

Contact the team

 


 

Paper plane

 

Get the latest news straight from our legal experts.

Subscribe to our newsletter to recieve current, dedicated, suppport and guidance from our solicitors straight to your inbox, wherever you are.

Company & Industry

Related Insights

Insights

HMRC warns of errors in property disposal reporting

Posted on 19th November 2021 in Probate & Wills, Later Life Planning

HMRC have identified potential errors regarding the declaration of residential property disposals for Capital Gains Tax (CGT) purposes when completing self-assessment tax returns for 2019/20.

Posted by

Sue Halfyard

Senior Associate and Chartered Legal Executive
Insights

Deprivation of assets and care funding

Posted on 12th November 2021 in Later Life Planning

Many people find the prospect of paying for care rather daunting, especially as they continue to increase. If you have care needs and are considering putting care in place, or moving into a care home, you may be wondering whether there is any way to avoid paying the fees yourself so that they are met by the local authority. 

Posted by

Emma Ruttley

Solicitor