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New figures from HMRC report a record £14.3bn paid in capital gains tax for 2020-21 which is up 42% from the previous year. It also reveals that 323 000 taxpayers paid the tax a yearly increase of 53 000.
HMRC accounts for this rise in part as a result of recommendations in the Office of Tax Simplification’s November 2020 report on capital gains tax that capital gains tax rates be aligned with income tax rates suggesting that speculation in the media about potential changes to the capital gains tax rates could have encouraged taxpayers to bring forward disposals in response to anticipated tax rises. These recommendations were not implemented.
In addition policy changes affecting eligibility for business asset disposal relief (BADR) contributed to the increase in liabilities.
Ross Stupart corporate tax partner at RSM UK said: ‘The...
