Tories Reinvigorate Economy
Published / Last Updated on 26/05/2010
by Ashley Clark, Director
David Cameron has announced plans to “reinvigorate the country’s economy by promoting private enterprise and cutting taxes”. He pledged to “re-open Britain for business”.
Mr Cameron also said there needs to be calm after much speculation of Capital Gains Tax being increased at the emergency budget on 22 June.
There is a possibility of CGT not being increased although Mr Cameron said that if individuals were to earn the first £10,000 tax free then there needed to be tax rises elsewhere to pay for it. Members of the Tory party had already voiced concerns about the proposed CGT rise, prompting a review.
Our View: What is known is that CGT is currently 18%. Previously, it was linked to earnings at 20% and 40%. A return to those rates is not unthinkable, although a reduction is a virtual certainty.
If you are about to realise gains then the known rate before 22 June 2010 is 18%. Any gains made past that date is an unknown.
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