Many discussions have taken place after the publication of the 21/22 Budget and many still are to follow. For this occasion, we have featured an article published on the Ascentric website. Here, Les Cameron, Head of Technical at Prudential – M&G’s partner as it is Ascentric – assesses what changes could be on the horizon, starting here with tax rates and boundaries, and the annual exempt amount.
In July 2020, Chancellor Rishi Sunak asked the independent Office for Tax Simplification (OTS) to undertake a review of capital gains tax (CGT) as it applies to individuals and smaller businesses.
The aim of the review was to advise on opportunities to simplify the CGT regime. The OTS published its first report reviewing the key principles of CGT in November 2020. A second report is to be published this year. This second report will explore technical and administrative issues.
OTS recommendations are only advisory. But with around 50% of its recommendations having been adopted by government in the past, it is important to know what could be in store.
In a two-part series, Les Cameron looks at what is being explored – starting here with CGT rates and boundaries, and the annual exempt amount.