Scope of OTS review of CGT needs clarification, says ICAEW
11 August: ICAEW has raised concerns that the scope of the Office of Tax Simplification’s review of capital gains tax extends beyond simplification and asked for further clarity.
The government’s policy objective in reviewing capital gains tax (CGT) needs to be carefully considered and clarified, ICAEW has suggested in its response to the Office of Tax Simplification’s (OTS) initial call for evidence on the principles of CGT.
In ICAEW representation 52/20, ICAEW outlines its concerns that the scope of the review extends beyond simplification, into policy areas that are outside of the remit of the OTS and are the preserve of government and parliament and asks for clarification of the objectives of the review.
ICAEW’s view is that CGT largely meets the policy intent as we understand it and the present rules do not distort behaviour to any significant extent.
ICAEW suggests that the policy objectives of CGT be carefully considered and that any significant changes would need very careful consideration before being implemented, over a longer period than this review allows.
The Chancellor asked the OTS to carry out this review into CGT on 13 July and a scoping document was published alongside his letter and the call for evidence. High level responses on the principles of CGT were requested in advance of the main phase of the review and the deadline for these comments was 10 August.
ICAEW’s Tax Faculty will be developing a more detailed response to the main phase of the review. Please send any comments to email@example.com by 30 September 2020.