ISA mistake - opened a General Investment Account.

vacheron

The increase in % from 10-18% basic rate was instant, otherwise there would have been a huge rush to the exits!  The reductions in annual allowances are usually applied at the beginning of the next tax year.

If you have shares, do what I did last october (thank you James Shack), sell just before the budget, and if the rate goes up, you have locked in the lower CGT rate. However, if the rate doesn't change, buy them back within 30 days and the bed and breakfasting rules meant that disposal is considered to have never taken place!   

In my case, Reeves upped the percentage, so I now have a  £2,200 CGT bill this year rather than a £4,000 one!

I think it would be extremely harsh to hit CGT again for basic rate taxpayers.It's already been completely neutered over the last few years from a £12,300 allowance with the excess at 10% to a £3,000 allowance with the rest at 18%. 

I really think this poor, almost dead, horse has been flogged enough! 

dunstonh

The increase in % from 10-18% basic rate was instant, otherwise there would have been a huge rush to the exits! 

There was a rush in the lead up.   We brought all our investors that routinely exceeded the allowance forward  to get in at the 10% rate.     

This year, most of them are not going to exceed their allowance but will change habits to avoid the 18% limit.  They were happy to pay at 10% but don't want to pay 18%.   

FIREDreamer

dunstonh said:

The increase in % from 10-18% basic rate was instant, otherwise there would have been a huge rush to the exits! 

There was a rush in the lead up.   We brought all our investors that routinely exceeded the allowance forward  to get in at the 10% rate.     

This year, most of them are not going to exceed their allowance but will change habits to avoid the 18% limit.  They were happy to pay at 10% but don't want to pay 18%.   

The Laffer Curve in action!