.png)
.png)
Simplifying by design
Key points
- Policy and principles underpinning capital gains tax.
- Disparity in rates between capital gains tax and income tax can distort decision-making.
- Reducing the number of rates would make it simpler for taxpayers to predict their liabilities.
- The annual exemption acts as an administrative de minimis and could also be reduced.
- Government should consider removing the capital gains uplift on death.
- Business asset disposal relief should be replaced with a relief better targeted at retirement.
In July 2020 the chancellor asked the Office of Tax Simplification (OTS) to carry out a review of capital gains tax to ‘identify opportunities relating to administrative and technical issues as well as areas where the present rules can distort behaviour or do not meet their policy intent.’ This was in line with the OTS’s strategic objective of looking at broader tax policy to inform wider debate. On 11 November 2020 it published...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
