U-Turn on Capital Gains Tax????

97trophy

1984ReturnsForReal wrote: »

Tories = Rich = Less Tax


Simple Maths

= more spending and investment in the economy without incurring huge debts = more jobs in the private sector.

simple economics

1984ReturnsForReal_2

97trophy wrote: »

= more spending and investment in the economy without incurring huge debts = more jobs in the private sector.

simple economics

You have a delay with that & you also rely on the people to invest & it is not a good time to invest.

Thrugelmir

References to share holdings are rather misleading when it comes to CGT. As over the years bed and breakfasting holdings into tax efficent vehicles is the likely course of action. As husband and wife could easily have accumalated £750k between them if they'd used full annual allowances for PEPS (then ISA's) from the outset and reinvested the income.

Then there's SIPP's as well if money allowed.

97trophy

1984ReturnsForReal wrote: »

You have a delay with that & you also rely on the people to invest & it is not a good time to invest.

Whenever tax rates fall, consumers spend more. That's universally accepted economic principle. There is no delay in the pick-up in consumer spending.

Yes, there is a delay in additional investment for new capacity.

1984ReturnsForReal_2

Thrugelmir wrote: »

References to share holdings are rather misleading when it comes to CGT. As over the years bed and breakfasting holdings into tax efficent vehicles is the likely course of action. As husband and wife could easily have accumalated £750k between them if they'd used full annual allowances for PEPS (then ISA's) from the outset and reinvested the income.

Then there's SIPP's as well if money allowed.

Any chance of a translation for normal people?

Or idiots like me who can only understand a small section of that..

1984ReturnsForReal_2

97trophy wrote: »

Whenever tax rates fall, consumers spend more. That's universally accepted economic principle. There is no delay in the pick-up in consumer spending.

Yes, there is a delay in additional investment for new capacity.

Most people don't pay capital gains tax so I am in a bit of a loss as to why you think a reduction in the rate would encourage people to spend more?........

I just think they would shove it in the bank or buy some shares.

Thrugelmir

1984ReturnsForReal wrote: »

Any chance of a translation for normal people?

Or idiots like me who can only understand a small section of that..

Every year sell some shares at a profit (within the CGT annual tax free allowances) and buy the same shares in an ISA. Any excess cash pay into a personal pension plan.

Why pay tax on gains or possibly suffer additional income tax on income?

dealsearcher

1984ReturnsForReal wrote: »

I think its actually aimed at those that run their own business pay themselves the minimum below income tax threshold & the rest in divs...

It's aimed at short term speculation but will actually hit long term savers who had seen the danger of pensions investing in a dodgy stock market and bought into property instead. Shares are relatively easy to sell at short notice, before 22 June. Properties are not so easy to sell.

People who run their own business are the engine room of this country's economics. Small businesses are notoriously difficult to keep in profit. The method you describe would ensure their business would prosper. These people reinvest any spare money in their business. That can only be good for the country.

dealsearcher

1984ReturnsForReal wrote: »

Most people don't pay capital gains tax so I am in a bit of a loss as to why you think a reduction in the rate would encourage people to spend more?........

People who would pay CGT are people who invest in property or shares. People who don't pay CGT do not. Therefore a lower rate for CGT would result in more investment from people who would invest.

1984ReturnsForReal_2

dealsearcher wrote: »

It's aimed at short term speculation but will actually hit long term savers who had seen the danger of pensions investing in a dodgy stock market and bought into property instead. Shares are relatively easy to sell at short notice, before 22 June. Properties are not so easy to sell.

People who run their own business are the engine room of this country's economics. Small businesses are notoriously difficult to keep in profit. The method you describe would ensure their business would prosper. These people reinvest any spare money in their business. That can only be good for the country.

So its not aimed at the 1/4 of a million people a year or so that set up a small limited company OR the hundreds of thousands of contractors that have been working under an umbrella company?