Backdating capital gains tax

21-May-2017 11:30

The reductions in capital gains tax rates and the extended difference between the highest rate of CGT from 6 April (20%, with extended amounts available for some at 10%) and income tax (45%) will mean that the distinction between income and capital profits (at least for individuals) becomes all the more important.And as we expand below, rates of income tax will shortly pass entirely into the control of the Scottish Parliament, but capital gains tax (and the law on which constitutes income or capital) will not. There was another important reminder of the constantly evolving differences between taxes in Scotland and the rest of the UK, in that new rates and structures were announced for stamp duty land tax on commercial property – changing a tax which no longer applies in Scotland in ways which it would now be impossible for the Scottish Parliament to replicate (even if they chose to do so) by the start of the new tax year.Thus we already knew about infrastructure investments in the North of England and London; that all English schools were to become academies; that there was to be no (further) fundamental reform of the private pension system; and much else besides.

Give them the cash at the wrong time or in the wrong way and they could end up being chased by the tax man at a later date.A year on from the UK election, a Conservative absolute majority, and even with fixed term Parliaments the next election a distant threat, this should have been able to be billed as a ‘Goldilocks’ Budget – neither too hot, nor too cold – just right for a confident governing party in a reviving country.But in fact that never seemed likely, and the torrent of leaks, trial runs and kites flown in the weeks running up to the Budget itself have all pointed to the constraints in which the Chancellor finds himself.For some, good tax advice will also be essential if you are, for example: The effective rate of CGT for gains qualifying for Entrepreneurs' Relief remains at 10% and the lifetime limit is £10 million.Nevertheless, disposals of business assets qualifying for Entrepreneurs' Relief may give rise to complications.

Give them the cash at the wrong time or in the wrong way and they could end up being chased by the tax man at a later date.

A year on from the UK election, a Conservative absolute majority, and even with fixed term Parliaments the next election a distant threat, this should have been able to be billed as a ‘Goldilocks’ Budget – neither too hot, nor too cold – just right for a confident governing party in a reviving country.

But in fact that never seemed likely, and the torrent of leaks, trial runs and kites flown in the weeks running up to the Budget itself have all pointed to the constraints in which the Chancellor finds himself.

For some, good tax advice will also be essential if you are, for example: The effective rate of CGT for gains qualifying for Entrepreneurs' Relief remains at 10% and the lifetime limit is £10 million.

Nevertheless, disposals of business assets qualifying for Entrepreneurs' Relief may give rise to complications.

So much has been trailed in relation to this year’s Budget that the Chancellor came to the Despatch Box metaphorically resembling a stripper who was already down to the bare essentials – what more could he possibly reveal?