Can Capital Gains Tax rate increase mid tax year?

zagfles

Bostonerimus1 said:

The sky is falling. If the CGT rate is a worry, be thankful.

You realise this is MSE, right? We discuss finance here, in particular ways to save money. Of which one way is minimising tax. 

silvercue

I really hope CGT does not increase.  Or, if it does then the tax free allowance is also increased.  That was £12k a couple of years ago, if I recall, and is a measly £3k now.  That does not really impact wealthy, but impacts the normal people investing in their future.  Something I think all governments should encourage.

InvesterJones

silvercue said:

I really hope CGT does not increase.  Or, if it does then the tax free allowance is also increased.  That was £12k a couple of years ago, if I recall, and is a measly £3k now.  That does not really impact wealthy, but impacts the normal people investing in their future.  Something I think all governments should encourage.

Given it doesn't apply to anything inside a tax wrapper I'd suggest the opposite - it doesn't normally impact people investing in their future, only the wealthy that have already maxed out their tax-free allowances.

Hoenir

InvesterJones said:

silvercue said:

I really hope CGT does not increase.  Or, if it does then the tax free allowance is also increased.  That was £12k a couple of years ago, if I recall, and is a measly £3k now.  That does not really impact wealthy, but impacts the normal people investing in their future.  Something I think all governments should encourage.

Given it doesn't apply to anything inside a tax wrapper I'd suggest the opposite - it doesn't normally impact people investing in their future, only the wealthy that have already maxed out their tax-free allowances.

Which are more than generous by global standards. 

wmb194

Hoenir said:

InvesterJones said:

silvercue said:

I really hope CGT does not increase.  Or, if it does then the tax free allowance is also increased.  That was £12k a couple of years ago, if I recall, and is a measly £3k now.  That does not really impact wealthy, but impacts the normal people investing in their future.  Something I think all governments should encourage.

Given it doesn't apply to anything inside a tax wrapper I'd suggest the opposite - it doesn't normally impact people investing in their future, only the wealthy that have already maxed out their tax-free allowances.

Which are more than generous by global standards. 

There has to be a good chance that the £20k Isa allowance will be reduced.

ColdIron

wmb194 said:

Hoenir said:

InvesterJones said:

silvercue said:

I really hope CGT does not increase.  Or, if it does then the tax free allowance is also increased.  That was £12k a couple of years ago, if I recall, and is a measly £3k now.  That does not really impact wealthy, but impacts the normal people investing in their future.  Something I think all governments should encourage.

Given it doesn't apply to anything inside a tax wrapper I'd suggest the opposite - it doesn't normally impact people investing in their future, only the wealthy that have already maxed out their tax-free allowances.

Which are more than generous by global standards. 

There has to be a good chance that the £20k Isa allowance will be reduced.

That should stoke up some intergenerational divide. If I was a younger person I'd be a bit miffed that I had one less opportunity to shelter my cash than my elders had, those rich 'boomers'

wmb194

InvesterJones said:

wmb194 said:

Hoenir said:

InvesterJones said:

silvercue said:

I really hope CGT does not increase.  Or, if it does then the tax free allowance is also increased.  That was £12k a couple of years ago, if I recall, and is a measly £3k now.  That does not really impact wealthy, but impacts the normal people investing in their future.  Something I think all governments should encourage.

Given it doesn't apply to anything inside a tax wrapper I'd suggest the opposite - it doesn't normally impact people investing in their future, only the wealthy that have already maxed out their tax-free allowances.

Which are more than generous by global standards. 

There has to be a good chance that the £20k Isa allowance will be reduced.

I don't see why?

Labour reduced the PEP from £9k to £7k when it was rebranded as S&S Isa. Lots of people think that having £20k available to invest in a year makes someone, 'wealthy.' In the past few years it's already seen fiscal drag and most of all it's an easy target with minimal political fallout.

InvesterJones

Yeah I don't see there being any particular push to reduce the ISA allowance, but if so (or moreso the £60k pension contribution cap) then it probably wouldn't affect the less well off that much.

Sea_Shell

Reducing the £20k  ISA limit could be seen to be only targeting the "rich", as not many couples are likely in a position to be able to add £40k of new money between them every year.

Would the average voter be bothered about such a change?   Easy "win" and not an actual direct tax rise.


Total ISA amount shielded from tax...hmm that's another potential banana skin for prudent lifelong savers.

Hoenir

Sea_Shell said:

Total ISA amount shielded from tax...hmm that's another potential banana skin for prudent lifelong savers.

Another administratively complex thing to monitor. What's actually required is simplification of the tax system.