UK government mulling over CGT changes
The Adam Smith Institute has today stepped into the UK capital gains tax debate with a suggestion that an increase to somewhere near income tax rates could actually reduce net tax receipts for the UK government. The institute believes that a rise in UK capital gains tax could actually cost the government up to £2.5 billion a year in tax revenues with investors discouraged from selling assets such as property and shares.
On the face of it you would expect an increase in capital gains tax receipts because of the proposed increase in the rate. However, if we really do see investors holding back from selling their assets then this will see less money released for the future which would mean less money being pumped into the UK economy. There is also the chance that investors may well begin to look overseas if UK rates are so high as to make it difficult to make a "reasonable profit".
There are many different ways to look at the capital gains tax issue and many different bodies will step forward over the next few days to put their particular arguments forward. However, the truth is that the UK government is stuck between "a rock and a hard place" with national debt higher than ever before, the budget deficit likely to remain significant for years to come and an economy which is struggling to push ahead.
Share this..
Related stories
Will UK taxpayers lose out if UK banks are split?
Despite the fact that the UK government believes that splitting UK banks will help introduce more competition into the sector there is a feeling that taxpayers could lose out on their direct investments in the likes of Lloyds bank, Royal Bank of Scotland and Northern Rock. It is believed that Royal Bank of Scotland alone could possibly lose around £2 billion a year in profits simply by spinning o...
Read MoreTelegraph finally reveals source of leak
The Daily Telegraph has today revealed the source of its leaked MPs expenses data as being one of the employment agency staff brought in to photocopy and process all MPs expenses. It now appears as though the Daily Telegraph paid around £110,000 to a third party acting on behalf of the mole although as yet we do not know the name of the contact within the Treasury.
While initially...
Who pulled the plug on Highland Airways?
This week's collapse of Highland Airways has grabbed the headlines in Scotland and put the UK government and HM Revenue and Customs (HMRC) firmly in the spotlight. It is believed that the company crashed after facing tax bills totalling £500,000 with rumours that HMRC was proving to be inflexible on the proposition to pay off the outstanding tax bills over two years. While there is every chanc...
Read MoreHow much has the MPs expenses system cost the UK taxpayer?
As the UK MPs expenses system continues to come under severe pressure and focus from the authorities there are concerns as to how much the whole system has cost UK taxpayers over the last 20 years. When you consider that literally millions upon millions of pounds of expenses claimed over the last five years have caused so much heartache and concern in the UK, how is this situation looking over the...
Read MoreTax affairs of BBC higher earners questioned by authorities
It has been revealed that a number of high-profile and highly paid presenters at the BBC are officially employed on a freelance basis despite the fact that they are for all intensive and purposes full-time members of staff. It is alleged that a number of these high paid presenters have set up their own private companies into which their income from the BBC is paid in order to take advantage of mor...
Read More