In July 2020, Chancellor Rishi Sunak charged the Office for Tax Simplification (OTS) with carrying out a review of Capital Gains Tax (CGT), sparking speculation that the government is planning to increase the tax in a bid to refill its coffers following the coronavirus pandemic.
Split into two parts, the first of which was published on 11 November 2020 and the second still to come, the OTS has so far made several interesting recommendations, including decreasing the annual exemption allowance to between £2,000 and £4,000 and moving CGT rates closer to Income Tax rates. The first, OTS suggests, would increase the number of people paying CGT by 360,000 annually, though some could be put off realising their gains.
We will be closely following the progress of the review and will keep you up to date with any developments.
The OTS has so far made several interesting recommendations, including decreasing the annual exemption allowance
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