Capital gains tax review sparks fears of rate increases
Miles Dean, Head of International Tax, comments in Taxation in relation to news that the Chancellor has requested the Office of Tax Simplification to conduct a review into capital gains tax.
Miles’ comments were published in Taxation, 15 July 2020, and can be found here.
“The chancellor has asked the Office of Tax Simplification (OTS) to undertake a review of capital gains tax and aspects of the taxation of chargeable gains in relation to individuals and smaller businesses.
As well as looking at opportunities to simplify the administration and impact of technical issues, the review will consider how the rules can distort behaviour or fail to meet their policy intent.
Miles Dean, head of international tax at Andersen in the UK, said: ‘Entrepreneurs’ relief has already been severely cut and I can see this being axed altogether. I can also see capital gains being increased to a top rate of 28% across the board. Levelling it with income tax rates would be too bitter a pill to swallow and at 28% is still low enough to reward the risk takers.’”