Brewin Dolphin calls for caution over CGT
by Richard Kilner
Story link: Brewin Dolphin calls for caution over CGT
On 22 June the new Coalition Government is set to change the Capital Gains Tax (CGT) regime, potentially adversely affecting a large number of small investors and prudent savers, Brewin Dolphin has warned.
Brewin Dolphin has called for the Government to proceed carefully, and to consider keeping the capital gains tax allowance at £10,000, taking account of inflation and re-introducing taper relief to promote long term investment whilst putting off short term speculators.
The firm has also suggested that a higher rate of CGT can actually reduce the tax take, as CGT is a voluntary tax.
It is possible that CGT could be raised to 40% or even 50%, and there has been no mention of taper relief, tax allowance or taking account of inflation.
Brewin Dolphin has warned that such dramatic changes could deter investment.
Earlier this month the firm issued advice to those likely to be affected by CGT changes, suggesting rebalancing assets between husbands and wives to take advantage of the tax allowance and considering offshore bonds.