CGT increasing from 18% to 40% to fund lower paid people

[amir_j]

The Lib Dems Robin Hood policy accepted by the tories...would rather it be used for reducing debt- bizarre.


The 18 per cent rate of tax on gains on non-business assets will be increased to close to the 40 per cent higher rate of income tax, meeting a central plank of Lib Dem policy, according to Tory insiders. There will be “generous exemptions” for profits related to business, in a bid to offset concerns about the potential chilling effect of the tax increase on entrepreneurs.

The revenue from the tax rise will be used to help fund a significant increase in the income tax threshold to help lower-paid people, taking effect in April. The new government, with George Osborne as chancellor, will also agree to subsequent real terms increases in this threshold, as part of a longer term goal of meeting the £17bn Lib Dem policy of raising the income tax exemption to £10,000.

from the Financial Times

[t11ner]

and they've agreed to drop plans to increase the inheritance tax threshold to £1m.

Makes me glad I voted Tory

[Eric Mc]

Basicially putting CGT partly back to where it was before 5 April 2008. But will they be introducing any sort of "aging" formula, such as Indexation or Taper Relief?

The mini-budget in a few week's time will be very interesting.

[M400 NBL]

If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.

I'm decorating a place that I WAS going to rent out again... so I will be keeping an eye on this thread.

I'll check out taxationweb later when I get a chance.

[Lost soul]

All the reasons people voted for them have now gone out of the window , so a party manifesto is worth nothing

[Eric Mc]

Lost soul said:

All the reasons people voted for them have now gone out of the window , so a party manifesto is worth nothing

Did you think any election manifesto was ever worth anything?

In this situation, both parties have to compronise to move forward. Otherwise, the country descends into chaos and uncertainty - and all that entails.

[amir_j]

Eric Mc said:

Lost soul said:

All the reasons people voted for them have now gone out of the window , so a party manifesto is worth nothing

Did you think any election manifesto was ever worth anything?

In this situation, both parties have to compronise to move forward. Otherwise, the country descends into chaos and uncertainty - and all that entails.

+1, the people voted that way and the tories had to work with what they had. Even today met a guy who voted Labour and has no idea how much debt there is.

[amir_j]

M400 NBL said:

a lot of landlords will be tempted to sell up.

Lets hope this does happen!

[Aiten]

amir_j said:

M400 NBL said:

a lot of landlords will be tempted to sell up.

Lets hope this does happen!

This! Out of purely selfish reasons mind you.

[Don]

Eric Mc said:

Basicially putting CGT partly back to where it was before 5 April 2008. But will they be introducing any sort of "aging" formula, such as Indexation or Taper Relief?

The mini-budget in a few week's time will be very interesting.

Will you post up your analysis, please, Eric? When the time comes...

[cs02rm0]

M400 NBL said:

If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.

I certainly hope so!

[julian64]

Don said:

Eric Mc said:

Basicially putting CGT partly back to where it was before 5 April 2008. But will they be introducing any sort of "aging" formula, such as Indexation or Taper Relief?

The mini-budget in a few week's time will be very interesting.

Will you post up your analysis, please, Eric? When the time comes...

Honestly don't think Eric knows anything about accountancy, as he spends all him time at work thumbing through Janes all the world's.

[TheCarpetCleaner]

cs02rm0 said:

M400 NBL said:

If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.

I certainly hope so!

[M400 NBL]

Balls, I didn't get a chance to get onto taxationweb... and now i'm leaving work to decorate the place I may or may not rent out again

[Akers]

TheCarpetCleaner said:

cs02rm0 said:

M400 NBL said:

If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.

I certainly hope so!

Would someone be so kind as to explain why this would be beneficial to the country as a whole?
Surely a sudden increase in the number of properties on the market would result in a rapid fall in house prices, thereby putting many home owners into negative equity?
Or is your hope purely a selfish one?

[Ozzie Osmond]

Since CGT has only been as low as 18% for about 10 minutes I can't see any reason to complain about it going back up to 40%.

And it's more likely that capital gains will be combined with income again so the top rate will actually be 50%

[JagLover]

Eric Mc said:

Basicially putting CGT partly back to where it was before 5 April 2008.

Agreed

It seems to me to be a nonsense to tax income at 40/50 % and CGT at 18%.

Index the gain by all means but tax it the same as income.

[rypt]

Akers said:

TheCarpetCleaner said:

cs02rm0 said:

M400 NBL said:

If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.

I certainly hope so!

Would someone be so kind as to explain why this would be beneficial to the country as a whole?
Surely a sudden increase in the number of properties on the market would result in a rapid fall in house prices, thereby putting many home owners into negative equity?
Or is your hope purely a selfish one?

Because house prices in this country are stupidly highly and need to fall

[cs02rm0]

Akers said:

TheCarpetCleaner said:

cs02rm0 said:

M400 NBL said:

If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.

I certainly hope so!

Would someone be so kind as to explain why this would be beneficial to the country as a whole?
Surely a sudden increase in the number of properties on the market would result in a rapid fall in house prices, thereby putting many home owners into negative equity?
Or is your hope purely a selfish one?

I think there's beginning to be an entire generation that aren't able to climb onto the property market. I see that as a bigger national problem than people maintaining value in homes that they don't live in.

[NoelWatson]

cs02rm0 said:

Akers said:

TheCarpetCleaner said:

cs02rm0 said:

M400 NBL said:

If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.

I certainly hope so!

Would someone be so kind as to explain why this would be beneficial to the country as a whole?
Surely a sudden increase in the number of properties on the market would result in a rapid fall in house prices, thereby putting many home owners into negative equity?
Or is your hope purely a selfish one?

I think there's beginning to be an entire generation that aren't able to climb onto the property market. I see that as a bigger national problem than people maintaining value in homes that they don't live in.

And then people won't need such high wages to pay preposterous mortgage meaning that UK can become more competitive.