Changes to Capital Gains Tax

BuyHoldRinseRepeatBuyHoldRinseRepeat Forumite
1 Post
MoneySaving Newbie
Hi all,
I know the government is currently looking to reform tax and CGT is on their target list. I am aware that the autumn budget has been postponed but will probably be announced after Christmas sometime.

My question is as follows:
Can the government make a change to the tax rules and retrospectively ask for tax? for example if i have already made a £5000 capital gain this tax year which is well within the current £12300 tax free allowance, can the government say right as of tomorrow we are scrapping the CGT allowance, you now owe us tax on the £5000 capital gain you have already made earlier in the year?

Thanks

Replies

  • edited 24 September 2020 at 9:03PM
    purdyoaten2purdyoaten2 Forumite
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    edited 24 September 2020 at 9:03PM
    The budget generally sets the tax allowances for the following tax year. The rates etc for this year have been  passed into law by the Finance Act 2020. Your scenario is not likely at all.
    NOS VEMOS!                   (ha sido divertido)
  • AlaraeAlarae Forumite
    354 Posts
    Seventh Anniversary 100 Posts Debt-free and Proud!
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    They generally don't do retrospective changes unless it is something they are attacking which they deem 'avoidance/evasion' like the loan charge.

    In my experience the rules either apply from the date of the statement, or from the start of the next tax year. 
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