When will any changes in Capital Gains Tax take effect?

Nova1307

I would imagine there will be a bit of share sell off just before 5th April next year.

masonic

Nova1307 said:

I would imagine there will be a bit of share sell off just before 5th April next year.

If someone wants to pick a good time to sell between now and 5th April, now doesn't look like a bad time to crystallise a gain. Who knows what is in store for global markets in the short term.

dunstonh

aroominyork said:

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?

When CGT was dropped to 10% and dividends 8.75% (final level) and had a decent annual allowance, bonds went out of fashion as they tumbled down the pecking order of tax wrappers.

Onshore bond taxation floats between 13% and 18% internally depending on asset mix.  The individual suffers no dividend tax or CGT.   Gains are added to income and subject to income tax but considered paid up to basic rate level. (i.e. no further tax for basic rate. only if it goes into higher rate).

Offshore bond taxation has no internal taxation with gains added to income and taxed under income tax.   Tax comes later which may be a bit higher than the offshore bond but this is often offset by having gross roll up rather than the annual internal taxation.

Gains can be controlled and deferred until a later tax year where the individual may be a lower rate taxpayer than current.

Nova1307

masonic said:

Nova1307 said:

I would imagine there will be a bit of share sell off just before 5th April next year.

If someone wants to pick a good time to sell between now and 5th April, now doesn't look like a bad time to crystallise a gain. Who knows what is in store for global markets in the short term.

True. It was more a likening to the usual ISA allowance utilisation rush that happens every year as people get reminded of the 5th April deadline. I think the outcome of the US election will have a big impact on markets as the potential outcomes in the middle east and Ukraine become a bit clearer. 

JamesRobinson48

ColdIron said:

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 think not: it looks like the new CGT rates come into effect today! From HM Treasury main budget pack, page 48, para 2.48:

The main rates of CGT are currently charged at a lower rate of 10% and a higher rate of 20%, and these will be increased to 18% and 24% respectively from 30 October 2024.

https://assets.publishing.service.gov.uk/media/6722120210b0d582ee8c48c0/Autumn_Budget_2024__print_.pdf

Nova1307

JamesRobinson48 said:

ColdIron said:

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 think not: it looks like the new rates come into effect today. From HM Treasury main budget pack, para 2.48:

The main rates of CGT are currently charged at a lower rate of 10% and a higher rate of 20%, and these will be increased to 18% and 24% respectively from 30 October 2024.

https://assets.publishing.service.gov.uk/media/6722120210b0d582ee8c48c0/Autumn_Budget_2024__print_.pdf

Ouch!

I read that many BTL landlords were selling up in anticipation of tax (presumably CGT) going up in this budget but it looks like residential property is not in the scope of these rises (applies to shares and other such assets). Only stamp duty on second properties has gone up but that will only impact future property transactions.

TBC15

For the hard of thinking, will my UTs I sold in late April this year be subject to 10% or 18% CGT?

dunstonh

TBC15 said:

For the hard of thinking, will my UTs I sold in late April this year be subject to 10% or 18% CGT?

Trades made today onwards would be.  Trades made yesterday or earlier would not be.

JeffMinter

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

DRS1

TBC15 said:

For the hard of thinking, will my UTs I sold in late April this year be subject to 10% or 18% CGT?

10% or 20% depending on whether you are a basic rate or higher rate tax payer