Government floats CGT concessions
Date: Tuesday 18th December, 2007
Author: Barry Hallam
It is being reported by the Daily Telegraph that the Government is considering a number of options relating to concessions on the new capital gains tax regime. One of these seems to be the ability to "opt for a deemed sale" before 5 April 2008 to lock into the favourable business taper and indexation relief. Presumably this would be a way of crystallising a gain without resorting to such devices as trusts.
It is being reported by the Daily Telegraph that the Government is considering a number of options relating to concessions on the new capital gains tax regime. One of these seems to be the ability to “opt for a deemed sale” before 5 April 2008 to lock into the favourable business taper and indexation relief. Presumably this would be a way of crystallising a gain without resorting to such devices as trusts.
As the Telegraph points out there will be risk associated with this especially if the eventual sale proceeds are less than the deemed proceeds. It will also mean paying the tax a year earlier.
There is a deadline of 31 January 2009 mentioned and it would appear that this is to coincide with the filing date for 2007/2008 tax returns.
There is a deadline of 31 January 2009 mentioned and it would appear that this is to coincide with the filing date for 2007/2008 tax returns.
Keywords: 'Capital gains', 'Pre Budget', 'Taper', 'Darling'
Please note that the opinions expressed in this blog represent the views of the author and not the views of Mercer & Hole.
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