Posted 12th November 2020
In the current climate it is unsurprising that the government is conducting a review of the tax system. In recent weeks we have seen the launch of the Treasury Select Committee enquiry into the ‘Tax after Coronavirus” and the commencement of an Office of Tax Simplification review of Capital Gains Tax (CGT).
The review will consider CGT and the taxation of chargeable gains in relation to individuals and smaller businesses and develop recommendations for simplification.
This will include consideration of general areas such as:
- The overall scope of the tax and the various rates which can apply.
- The relief’s exemptions and allowances which can apply, and the treatment of losses.
- The annual exempt amount and its interaction with other relief’s.
- The position of individuals, partnerships, unincorporated businesses, stand alone owner-managed trading or investment companies and estates in administration.
- How CGT interacts with other parts of the tax system.
It will also look at more specific areas including administrative and technical issues.
The government has commissioned this research but is not obliged to take on any of the recommendations from the subsequent OTS report. It does however, show how thinking on future legislation may be influenced.
This work is ongoing and as yet no conclusion has been reached. We will add updates as we hear more.