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NEWS

Capital Gains Tax under review

The Government has asked the Office of Tax Simplification (OTS) to identify and offer them advice about areas where the current capital gains tax rules (CGT) do not meet their policy intent or where they distort behavior. 

The OTS has also been asked to identify simplification opportunities relating to administrative and technical issues affecting individuals, partnerships and unincorporated or single-entity owner-managed companies.

An online survey will be used in the evidence-gathering process to secure the widest possible participation. The process is divided into two parts:

  • Responses on the principles of CGT are invited by 10 August 2020
  • Responses to the main call for evidence covering all aspects of CGT are required by 12 October 2020 

Although no dates have been given for changing the CGT system, the expectation is that the Chancellor will outline the next steps during the autumn Budget with draft legislation debated in 2021 and coming into force in 2022 at the earliest.

If you would like to respond to the call for evidence, you can do so by emailing ots@ots.gov.uk

 

16/07/2020

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REF: MC/NL/1.2