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Capital gains tax review – be part of the debate

21 September 2020: Register now to join the Tax Faculty’s webinar with the Office of Tax Simplification (OTS) and discuss potential changes to the CGT regime

There is a lot of speculation concerning changes to the capital gains tax (CGT) regime. Although the remit of the OTS is normally to consider simplification, its latest review extends to 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 Chancellor specifically asked the OTS to undertake a review of CGT and aspects of the taxation of chargeable gains, in relation to individuals and smaller businesses. The review covers:

  • the overall scope of the tax and the various rates which can apply,
  • the reliefs, exemptions and allowances which can apply, and the treatment of losses,
  • the annual exempt amount and its interactions with other reliefs,
  • the position of individuals, partnerships and estates in administration,
  • the position of unincorporated businesses and stand-alone owner-managed trading or investment companies (including the setting up, selling or winding up of such businesses or companies),
  • any distortions to taxpayers’ personal or business investment decisions, and
  • interactions with other parts of the tax system (such as income tax, capital allowances, stamp taxes and inheritance tax) including potentially different definitions for similar transactions/events.

The review will also look at more specific areas, such as administrative or technical issues relating to:

  • clearance and claims procedures,
  • chargeable gains on shares and securities (including holdings of listed shares),
  • the acquisition and disposal of property,
  • the practical operation of principal private residence relief,
  • consideration of the issues arising from the boundary between income tax and CGT in relation to employees,
  • valuations, record-keeping, calculating any tax payable and making returns, including claiming losses, and
  • the information HMRC has and can use to help reduce administrative burdens, improve customer experience and ensure compliance.

To hear more from the OTS and have the opportunity to ask questions or make comments, book now to join the webinar on 29 September at 11:00. The webinar is free to all ICAEW Members, as well to Tax Faculty members and subscribers to Faculties Online.