We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Autumn Budget and CGT

With possible changes to CGT in the autumn budget is it worth using the CGT allowance up ahead of time?


«1

Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    TBC15 said:

    With possible changes to CGT in the autumn budget is it worth using the CGT allowance up ahead of time?



    No; as they would be crazy to create a headache by having a random mid-year date be a cut off point for rates or exemptions within a tax year, especially without any notice of it.
  • kinger101
    kinger101 Posts: 6,502 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It's unlikely any changes would be implemented immediately.  At the earliest, it would be effective 6 April.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • EdSwippet
    EdSwippet Posts: 1,633 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    No; as they would be crazy to create a headache by having a random mid-year date be a cut off point for rates or exemptions within a tax year, especially without any notice of it.
    And yet, George Osborne did exactly this in June 2010:

    https://www.accountingweb.co.uk/tax/hmrc-policy/cgt-rate-rises-to-28-from-22-june
  • TBC15
    TBC15 Posts: 1,488 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    TBC15 said:

    With possible changes to CGT in the autumn budget is it worth using the CGT allowance up ahead of time?



    No; as they would be crazy to create a headache by having a random mid-year date be a cut off point for rates or exemptions within a tax year, especially without any notice of it.

    Well that puts my mind at rest.


  • TBC15
    TBC15 Posts: 1,488 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    EdSwippet said:
    No; as they would be crazy to create a headache by having a random mid-year date be a cut off point for rates or exemptions within a tax year, especially without any notice of it.
    And yet, George Osborne did exactly this in June 2010:

    https://www.accountingweb.co.uk/tax/hmrc-policy/cgt-rate-rises-to-28-from-22-june

    Well that gives me cause for concern. Any thoughts on whether the CGT allowance may be scrapped?


  • Linton
    Linton Posts: 17,916 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    TBC15 said:
    EdSwippet said:
    No; as they would be crazy to create a headache by having a random mid-year date be a cut off point for rates or exemptions within a tax year, especially without any notice of it.
    And yet, George Osborne did exactly this in June 2010:

    https://www.accountingweb.co.uk/tax/hmrc-policy/cgt-rate-rises-to-28-from-22-june

    Well that gives me cause for concern. Any thoughts on whether the CGT allowance may be scrapped?


    ISTM that it is unlikely the CGT allowance would be scrapped.  Without allowances HMRC would spend too much time chasing trivial amounts of money.
  • Old_Lifer
    Old_Lifer Posts: 780 Forumite
    500 Posts Second Anniversary
    I  have been wondering about the future direction  of CGT myself  since the Review to be completed shortly  was announced   and  with a Budget shortly afterwards.

    An increase in the rates of CGT is probably likely.    When CGT was first introduced there was no  CGT allowance.  Do you consider a reduction in the allowance likely    or  even  no allowance at all,  given we have ISAs ?

    Again,   when CGT  was first introduced  ,  gains made within a year  were taxed as income.   Is this likely ?

    Do you expect the scope of CGT to be widened  with assets not currently subject to the tax brought within the fold ?  

    Previous  Chancellors  have steered clear of charging  CGT of the sale of the main residence.     Is this likely to finally change,  perhaps with the sweetener of the first few hundred thousand pounds of gain exempt ?      A more acceptable alternative to  a large part of the population,  would be a higher rate of CGT on the sale of second homes.

    I am not enamoured of gold myself nowadays   but given the way gold has risen steeply recently,  would it be possible  to change the status of   gold coins which are currently legal tender and exempt from CGT ?

    A common way to avoid CGT is ISAs.      Are there too many types of ISA and  does the cash ISA serve any purpose nowadays ?   Given that many of our citizens are faced with hard times  and many will be unable to put anything like £20,000 into an ISA is the  present ISA limit  too generous and likely to be reduced ?

    Like many after years  of investing. I have an unwrapped portfolio  and have for years been tinkering around the edges by doing Bed & ISAs.    Have other Forum members been doing this  ahead of the Budget ?   Perhaps  moving a currently depressed holding (but expected to improve)  in order to create a loss on the sale.    While changes to  CGT are likely to come in next year,  do  the more cautious Forum members intend to take gains up to the allowance before the Budget ?

    Of course   CGT  is not only a concern to those with existing assets.   It  will also be  a concern to those  who are just entering the arena  of  investing  and who intend to accumulate assets in the years ahead.


  • noClue
    noClue Posts: 163 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    edited 30 August 2020 at 11:20AM
    I think tax haven is the way this country is heading to post-brexit...? lol
  • wmb194
    wmb194 Posts: 4,265 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Do you have the opportunity to bed-and-Isa a few things? This might not be a terrible idea if you're worried. I wouldn't be surprised if the Isa allowances are reduced at some point in the future, too.
  • TBC15
    TBC15 Posts: 1,488 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    wmb194 said:
    Do you have the opportunity to bed-and-Isa a few things? This might not be a terrible idea if you're worried. I wouldn't be surprised if the Isa allowances are reduced at some point in the future, too.

    The ISA allowance got consumed back in April.


Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.3K Spending & Discounts
  • 240.7K Work, Benefits & Business
  • 616.9K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 253.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.