Rise in Capital Gain Tax UK could hit basic rate taxpayers

The rise in Capital Gains Tax will hit some middle income earners who have invested in assets such as property over many years, tax experts have warned.

Table of contents

Rise in Capital Gain Tax UK could hit basic rate taxpayers

The rise in Capital Gains Tax will hit some middle income earners who have invested in assets such as property over many years, tax experts have warned.The announcement made in the budget last month by Chancellor George Osborne, revealed that the CGT rate for high earners will increase from 18% to 28%.  However, lower earners could also be hit by the rise if the sale of an asset takes them into the higher income threshold.  Any gain from such a sale would be added to your income and may push you into the higher rates of tax.Property has been used by some investors instead of a pension and they may now be better off holding on to the properties and renting them out if they can.  That way, they can benefit from the monthly rental income, rather than using a lump sum from a sale for a pension (and being charged CGT on the lump sum).Fortunately, the rental market is currently quite strong.  The government’s move can be seen as quite positive as it had not raised CGT for higher rate taxpayers to the 40% rate it was at before the flat 18% rate was introduced.  If you bought your investment property years ago, you will still be better off, as 28% is still less than the previous of 40%.

Join our Newsletter

Subscribe and get the latest updates about inheritance tax and Estate Planning into your mailbox.

Contact Us

Bluebond Tax Planning
5 PalmerstonDrive,
Wheathampstead,
Herts,
AL4 8FE

Tel: 020 8895 6157 (clients only)
Tel: 01582 832253 (suppliers only)

Email:

enquiry@bluebond.co.uk

How can you pay
ZERO inheritance tax ?

The information contained in this web site is for UK consumers only.  Like most firms of solicitors and accountants, Bluebond Tax Planning is not regulated by the FCA. The content of this website does not constitute FCA regulated financial advice and all content is provided for general information purposes only. Bluebond is not responsible for any action you may take as a result of information on this site. All advice will be delivered on a personal basis once we fully understand your situation and our client agreements have been signed.

Copyright © 2020 Bluebond.co.uk
-
Copyright Notice
-
Legal Disclaimer
-
Terms & Conditions
-
Privacy Policy