Opportunity to contribute to the CGT review

Posted by on Jul 17, 2020 in Uncategorised | Comments Off on Opportunity to contribute to the CGT review

On the 14th July the Chancellor confirmed his request to the Office of Tax Simplification (OTS) to undertake a review of Capital Gains Tax (CGT). This is the first time that the OTS have been asked to review CGT and, as their name suggests, their focus is on how the tax operates rather than the policy itself.

The scope of the review will include the various reliefs, exemptions and allowances which can apply. They will also be looking at the interaction of operating as a company or as an unincorporated business. The OTS will be particularly interested in any distortions to taxpayers’ personal or business decisions caused by the way CGT operates.

Simplification of the tax regime and its administration would be welcome but as a cash poor and asset rich business, farmers and landowners will be particularly concerned about any proposals that could increase tax liabilities associated with the ‘patient capital’ locked up in capital assets.

The review will be particularly influenced by any case studies that are brought to their attention that illustrate issues that require attention.

Simon Dixon Smith, as chair of the CLA’s national tax committee will be getting involved in the CLA’s submission to the consultation that has been launched. He would welcome any thoughts and information that could help to shape the CLA’s response.

If you have experienced particular issues with the CGT regime, and are happy for your experience to be referenced (anonymously) then please do not hesitate to contact Simon.

The initial consultation on the principles of CGT ends on the 10th August. More detailed comments can be submitted up until 12th October 2020.

A copy of the review scoping document can be found at https://www.gov.uk/government/publications/ots-capital-gains-tax-review-scoping-document

Please contact Simon Dixon Smith on simon@landpartners.co.uk or telephone 01376 328297.