In an update to the GOV.UK website recently the following post appeared:
The Chancellor has written to the OTS (Office of Tax Simplification), to ask the OTS to undertake a review of Capital Gains Tax and aspects of the taxation of chargeable gains, in relation to individuals and smaller businesses.
As well as looking at opportunities to simplify administration and the impact of technical issues, the review will explore areas where the present rules can distort behaviour or do not meet their policy intent, to help ensure the system is fit for purpose.
The scoping document for the review has also been published, together with a call for evidence and an online survey.
In his letter, Rishi Sunak also said:
This review should 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. In particular, I would be interested in any proposals from the OTS on the regime of allowances, exemptions, reliefs and the treatment of losses within CGT, and the interactions of how gains are taxed compared to other types of income.
Let us hope that any changes to this tax – if subsequently made – do simplify the taxation of capital gains and do not add further layers of complexity.
If you would like to discuss this article in more depth, please contact DSC Accountants today.