I’m not one for usually reading online tabloid newspaper articles where it takes a half hour to get past the fluff but someone sent me a link to this story. If you can get through the ads and links to other stories, there is a potentially important topic being discussed and one which has been touched upon before in previous articles.
The crux of the story is that the Chancellor may be considering a capital gains tax hike in the next Autumn Budget. This has been on the agenda for a couple of years really with lots of experts saying it will definitely happen at the next Budget, and then the next one, and so on. Eventually, they will probably be correct as the Chancellor will no doubt seek to generate extra revenue by taxing gains, particularly on rental properties as property prices have boomed.
Some people will have been thinking of selling assets and this may be the time to do so before any rate increase. If you aren’t thinking of selling, then a rate increase may not bother you at this moment but it is worth considering what may happen in the future. If rates go up, when will they go down, if at all? It’s crystal ball time really but the nearer we get to the Autumn Budget the more likely we will see further predictions for rate increases.
Whilst we do not have any preternatural ability to know when tax rates will go up, or by how much, we can give advice as to how you may be able to mitigate potential liabilities. In most cases, mitigation planning is as important now as it may be after a tax rate increase.