Treasury to maintain existing capital gains tax rates

CGT

The Treasury has dismissed recommendations from the Office of Tax Simplification (OTS) to align capital gains tax with income tax, instead accepting a handful of technical changes to the tax.

 

Lucy Frazer, financial secretary to the Treasury, said changes to the rate of capital gains tax or annual allowances are not under consideration as "these reforms would involve a number of wider policy trade-offs" that require "careful thought".

 

Capital gains tax applies at 10% for basic-rate taxpayers and 20% for higher and additional-rate taxpayers for non-residential assets.

 

The Government accepted five out of 14 smaller technical changes that the OTS had previously suggested, including:

  • the creation of a central hub for reporting and storing capital gains tax data
  • an extension to the ‘no gain, no loss' on separation and divorce
  • an expansion of rollover relief to cover land and buildings under compulsory purchase orders.