is capital gains tax 18% set in stone

savinglikemad

hi about to put ex rented property on market in new year, but want to check the cgt as from 6.4.08 will be 18% I know it was proposed but can't see on gov site anything to confirm it has been passed,

dunstonh

It is is not in stone yet and many groups are lobbying the Govt to change some parts of it.

The main sticking point for many is the removal of reliefs for CGT which can actually make CGT more expensive at 18% than at 40% with reliefs for longer term holdings.

I doubt the Govt will alter 18% and will probably not bring back reliefs for anything other than certain business disposals.

savinglikemad

when will it be set in stone, do the goverment have a date when it has to be agreed or it is defferred

jamesd

We'll know it it is announced in the next Budget. Can't count on it until then.

Cook_County

The "stone" moment is when the Queen signs the Finance Act into law in July/August 2008.

There is intense lobbying from various communities who will be harmed such as the London fine art market (because art & antique sales will largely move to Paris or New York) ... we shall see if Darling listens...

savinglikemad

now very confused thought it came into effect on 6.4.08 but if it does not get signed til summer, does that mean I could sell house in say April thinking I would be payint 18% yet it not get passed until summer which by then it may be rejected so have to pay 40% instead (Plus taper relief etc)

Pennywise

savinglikemad wrote: »

now very confused thought it came into effect on 6.4.08 but if it does not get signed til summer, does that mean I could sell house in say April thinking I would be payint 18% yet it not get passed until summer which by then it may be rejected so have to pay 40% instead (Plus taper relief etc)

In theory, yes, but with Labour having a fair old majority at the moment, it is unlikely that their budget 2008 proposals (announced Mar 08) will be rejected by Parliament, so it is a fair bet that whatever is announced in next year's budget will actually happen, even though it won't actually be written in law until a few months later.

savinglikemad

so providing it does not kicked out 18% should come into effect 6.4.08 and I am safe to sell house after that date and pay 18% (OBvoiusly there is always a chance that it may get overturned but as it all stands at moment )

Cook_County

savinglikemad wrote: »

so providing it does not kicked out 18% should come into effect 6.4.08 and I am safe to sell house after that date and pay 18% (OBvoiusly there is always a chance that it may get overturned but as it all stands at moment )

If you think that tax will go down then it is likely that the value of the property will also fall at the same time because of the volume of people doing the same thing...

Never let the tail wag etc...