When will any changes in Capital Gains Tax take effect?

onomatopoeia99

masonic said:

onomatopoeia99 said:

wmb194 said:

As per the mid-year change in 2010, the next day.

Was that for gains made from the next day, or gains reported from the next day? 

It would be for disposals made from the next day. If gains not only had to be crystallised but also reported, it would be quite an incentive for everyone to complete their tax returns for 2023/24 in the next few days

Appreciate the clarification - I made a gain (that is, I sold an asset) a week ago which will cause me to have CGT to pay, some at 10%, some at 20%. It's the first time I've ever been due to pay CGT and will almost certainly be the last as well.

I have not reported it yet and the only way HMRC will be able to figure how much CGT I owe is come April when they know how much taxable income from employment I have and therefore how much of the gain needs to be taxed at 20%, which is incidentally why I don't entirely get the purpose of the "real time reporting" option the site offers.

artyboy

hallmark said:

I don't understand the "stop discussing things, just wait until the budget" mantra.

If you don't want to discuss things that's cool, then don't.

Some people enjoy it, and it can be useful as people often suggest new angles or things you weren't aware of.  Or just to see what other people are thinking.

If, for example, everytime somebody wanted to discuss who might win an upcoming sporting event they were shut down with "just wait until it's over then you'll know who won", it'd be a pretty dull world.

My view on CGT: I think there's a fairly compelling case for raising it w/eff 6th April as that would generate an instant stream of gains from all those people rushing to cash in now.   Raising it with immediate effect is more likely to stop people selling and might actually reduce revenue.

These speculative threads almost always end up veering into political debate, and go off topic, get closed, or disappear entirely. So yes, fill yer boots if you like but to many around here, it is all getting rather repetitive...

masonic

onomatopoeia99 said:

masonic said:

onomatopoeia99 said:

wmb194 said:

As per the mid-year change in 2010, the next day.

Was that for gains made from the next day, or gains reported from the next day? 

It would be for disposals made from the next day. If gains not only had to be crystallised but also reported, it would be quite an incentive for everyone to complete their tax returns for 2023/24 in the next few days

Appreciate the clarification - I made a gain (that is, I sold an asset) a week ago which will cause me to have CGT to pay, some at 10%, some at 20%. It's the first time I've ever been due to pay CGT and will almost certainly be the last as well.

I have not reported it yet and the only way HMRC will be able to figure how much CGT I owe is come April when they know how much taxable income from employment I have and therefore how much of the gain needs to be taxed at 20%, which is incidentally why I don't entirely get the purpose of the "real time reporting" option the site offers.

My understanding is that the real time reporting service is there to avoid people being dragged into self assessment just to declare a one-off capital gain. So it may fit your situation, but you cannot use it until you know how much basic rate band you will have available at the end of the tax year.

Albermarle

I understood ( although I can not remember where I read it) that the majority of gain in CGT returns to the Govt will come for a very small but very wealthy section of society. So presumably timing will revolve around their likely reaction to a rise.
Whether the more moderately wealthy cash some investments in earlier or later, is maybe not going to concern the Treasury too much. 

The_Green_Hornet

Albermarle said:

I understood ( although I can not remember where I read it) that the majority of gain in CGT returns to the Govt will come for a very small but very wealthy section of society. So presumably timing will revolve around their likely reaction to a rise.
Whether the more moderately wealthy cash some investments in earlier or later, is maybe not going to concern the Treasury too much. 

According to this research paper the top 5,000 taxpayers received more than half (52.2%) of all taxable 

gains in 2020, amounting to an average of £6,815,000 per person.

Who would be affected by Capital Gains Tax reform?

aroominyork

18% basic rate, from when?

onomatopoeia99

aroominyork said:

18% basic rate, from when?

She didn't say that I heard.

ColdIron

Chancellor Rachel Reeves has announced that CGT will rise from 20% to 24% at the higher tax rate. 

The lower CGT rate will rise from 10% to 18%. 

The new rules will come into effect from 5 April 2025 and are expected to raise £25bn.

‘I know that this is a difficult choice,’ Reeves said. ‘I do not take this decision lightly’. 

Under the current regime, higher rate taxpayers pay 20% on gains made from other assets and 24% on gains made from selling a second property. The news therefore marks a modest increase of 4%  for those making gains on share sales. 

Under the new rules, Reeves has stated that the tax-free allowance will remain the same. 

The annual allowance currently stands at £3,000, and £1, 500 for Trusts, after Conservative Chancellor Jeremy Hunt used his 2022 Autumn Statement to cut the CGT threshold from £12,300 and £6150 respectively.https://citywire.com/wealth-manager/news/cgt-higher-rate-increased-to-24/a2453193

dunstonh

As expected, the investment bond wrappers are back in play again. Not for everyone but significantly more than before.

aroominyork

dunstonh said:

As expected, the investment bond wrappers are back in play again. Not for everyone but significantly more than before.

Can you explain these please?