How does UK capital gains tax compare to other countries?
We have had the spectre of capital gains tax in the UK for many years although lately there have been benefits for those who hold assets for the longer term with a reduction in capital gains tax charges. However, when you consider that the 30 leading countries of the Organisation for Economic Co-operation and Development do not have rates of capital gains tax in excess of 30%, if assets are held for over three years, it does begin to reflect badly on the UK.
The average rate of capital gains tax amongst these 30 leading countries is 15% although it has to be said that many of these countries do not in fact charge any capital gains tax on investments and assets. The likes of Austria, Belgium, Switzerland and Germany do not charge any capital gains tax but still appear to raise enough money via other taxes to run the country. So why is the UK any different?
Maybe it is the fact that the UK is one of the central investment markets of the world or maybe the fact that historically capital gains tax has always been accepted, perhaps more than other taxes. However, initially it was brought in to tax those in the wealthier brackets but now more and more people are being caught up in the capital gains tax dragnet.
Share this..
Related stories
How do you know that you are paying the correct income tax?
Today's revelation that hundreds of thousands of workers in the UK have received incorrect tax codes for the 2010/11 tax year will have shocked many people. The vast majority of us automatically assume that the information which the revenue sends to our employers and ourselves is correct and does not need to be reviewed or checked. However, how can you be so sure this is the case? While there h...
Read MoreTaxpayers will now receive tax breakdown letters
03/11/2014 From this week millions of taxpayers will start to receive details of exactly how their money is being spent by the government. The initiative was announced in 2012 by Chancellor George Osborne when the government said it wanted to start a “revolution in transparency”. The letters will show how much tax and national insurance the individual has paid, as well as a breakdown of...
Read MoreHome Information Packs - A Tax On Home Sales?
The National Association of Estate Agents has called on the government to instigate a thorough review of the Home Information Pack (HIPs) system amid claims that it is not fit for purpose. It was common knowledge prior to the launch that some mortgage lenders would still ask for their own surveys leading to claims that HIPs are just a tax on home sales.
However, the chances of the...
Where did all the money go?
As the UK economy continues to bump along in recession many people are now wondering where the billions upon billions of pounds of taxpayer's money has all gone. We have seen a quantitative easing investment programme in the billions, we have seen VAT reduced, we have seen the UK government take a large stakes in UK banks and investment programmes continue up and down the country. However, if the...
Read MoreIs Northern Rock back on the rocks?
The management of Northern Rock have today announced that the company will stop paying interest, where legally possible, on all outstanding bonds. In a move which is likely to cause concern within the UK banking system and concern for UK taxpayers, who officially own the bank, the reason for the announcement was a need to retain as much cash within the business as possible.
Bond hol...