Press Room

12 Nov 2020

Investors on ‘high alert’ as OTS proposals could triple population subject to CGT


Miles Dean, Head of International Tax, comments in relation to The Office of Tax Simplification’s report into capital gains tax, in Investment Week and Forbes.

Miles’ comments were published in City A.M, Investment Week and Forbes, 12 November 2020, and can be found here and here respectively.

“Office of Tax Simplification (OTS) proposals published this week could see the number of UK tax payers subject to capital gains tax (CGT) triple, according to tax experts, who warn investors should be on “high alert” over the controversial plans.

The OTS plans could raise around £14bn for the public purse by cutting exemptions and doubling rates, with the government-run body arguing that the current system can “distort behaviour” as taxpayers look to reduce their bill…

Commenting on the proposals, head of international tax at Andersen Miles Dean acknowledged that taxation of capital gains has “become too complicated”, but warned that “aligning with income tax is not the answer”.

He explained: “The case for lower rates of tax on capital gains is that the asset that produces the gain is more often than not acquired using taxed income.

“To then tax the gain at income tax rates is pernicious given that the capital has been tied up.”

Dean said that aligning GCT gains with income will result in “wealthy foreigners shunning the UK, wealthy Brits leaving and the Conservatives signing their own death warrant”, adding that the country already has “myriad anti-avoidance rules to prevent income being repackaged as gains – and these provisions work”.”

 


Miles Dean

Miles Dean

Miles is Head of International Tax at Andersen Tax in the United Kingdom. He advises privately held multinational companies, entrepreneurs and high net worth individuals on a wide range of cross border tax issues.

Email: Miles Dean