Will the government push through a capital gains tax increase?
Speculation that the Liberal Democrats are behind a proposed increase in capital gains tax from 18% to 40% have angered many investors in the property market. The proposed rise will only apply to non-business assets although the very fact such a move was never mentioned by the Conservative party during the election campaign points to a Liberal Democrat initiative.
There is no doubt that the Conservative party has been forced to give way on a number of vital policies in the area of taxation. In what became a very high profile and very high risk period of horsetrading, David Cameron was able to put together a coalition government but may well pay the price in the eyes of the public and business arena. There are many in the Conservative party who believe that too much has been given away to the Liberal Democrats and there are many in the Liberal Democrat party who believe the Conservatives have gained their support on the "cheap".
This proposed rise in capital gains tax for non-business assets will hit wealthy individuals in the UK and could see a number of them move to overseas tax havens in the short to medium term.
Share this..
Related stories
Cost of UK financial sector bailout could hit £140 billion
Lord Turner, the head of the Financial Services Authority (FSA), has spoken to the Treasury select committee today with regards to the overall cost of the financial bailout in the UK. Despite the fact that the Treasury had initially suggested losses in the region of £10 billion-£50 billion, Lord Turner seemed to indicate the cost could be higher with a suggestion of a range between £70 billion-...
Read MoreWill Tory calls for small business tax cuts be heard?
The Conservative Party has this week continued its new assault on the government's handling of the economy and called for an immediate tax cut for small businesses in the UK which are literally falling like flies as the economic downturn continues. The party has also called for business taxes to be suspended for a short period for those hardest hit to give them more chance of riding out the econo...
Read MoreWhitehall Spin Doctors Hang Gieve Out To Dry
The influential Evening Standard, the newspaper which seems to be very much in touch with the inner workings of the government, has launched a scathing attack on the treatment of now ex-deputy governor of the Bank of England, Sir John Gieves. It seems as though Sir John, who was hired by Gordon Brown, was the victim of a vicious political poly to bury the bad news contained in Alistair Darling&rs...
Read MoreDavid Cameron announces plans for banking tax
In a move which is certain to attract controversy in the City of London, David Cameron has announced plans for a UK banking tax if his party gains power at the next election. He has dropped his earlier condition that international counterparts also adopt a banking tax, citing the fact that taxpayers need to be repaid for their financial assistance during the recession. While this makes perfect sen...
Read MoreReport: Unfair council tax must be reformed
Council tax systems in England and Wales are unfair on local communities and must be urgently reformed, an influential report has concluded.The independent review of local government by Sir Michael Lyons, professor of public policy at Birmingham University, recommends that council tax bands be rebalanced to reflect changes in property prices.Ahead of today's Budget announcement from Gordon Brown,...
Read More