Replace Capital Gains Tax With Income Tax
Published / Last Updated on 26/09/2019
Almost certainly there will be a general election before Brexit but either way in a post Brexit World, taxation will change. Expect taxes to rise.
Think tank: The Institute for Public Policy Research suggests that Capital Gains Tax should be abolished and treated as income tax.
- CGT £12,000 annual exemption to go and just have “a de minimis” allowance, such as £1,000 to remove the need for millions of “trivial” gains to be reported.
- Gains above this limit to be taxed as income, implying rates of 20%, 40% and 45%.
- The capital gains tax exemption on death to be removed. So you pay capital gains tax on death and then inheritance tax!
- Entrepreneurs’ relief to be abolished.
- Capital gains tax to be a[[lied to fixed interest bonds, removing the current exemption for qualifying corporate bonds and gilts (this is unlikely as the government will not make it less attractive to lend them money i.e. gilts.
