What Could Proposed Changes to Capital Gains Tax Mean For You?

Ross Coombes, Financial Planning Director - Investec Wealth & Investment - ross.coombes@investecwin.co.uk
 
If we learned one thing in 2020 it is that nothing is certain, and that’s true of a potential tax change rumoured to be landing in 2021. The government need to foot the bill for the significant economic fallout of the Covid-19 pandemic somehow, so it’s hardly surprising that members of the Treasury select committee are now considering changes to capital taxation.
If enacted, these changes will have a material impact on business leaders, higher rate taxpayers and investors alike.
While nothing is a given, this article explores what the possible changes could mean for you at a high level.
 
What are the potential changes to the CGT allowance and CGT rates?
The current CGT rates are 10% for basic rate tax payers and 20% for higher rate and additional rate tax payers (18% and 28% respectively on second properties). The proposed changes include adjusting CGT rates in lin...