CGT and the budget

artyboy

I'm just amazed there appears to have been no media speculation this time round about cutting the pension TFLS limit. It's usually one of the first to get whipped into a frenzy when it looks like there is a tough budget ahead…

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82144710#Comment_82144710

That would be a shame - the sum total of my CGT planning is "Till death do us part".

aroominyork

Current retirees have planned around PCLS/TFLS so it cannot be changed quickly - people need notice. In a sensible world it would be looked at as part of a root and branch review of state and private pensions.

leosayer

https://forums.moneysavingexpert.com/discussion/comment/82144937#Comment_82144937

I believe the previous chancellor's team engaged in quite a bit of media 'kite flying' and discussions with the pension industry which gave rise to the rumours.

Doesn't seem to be happening this time.

TBC15

I used up my 10% CGT band before it was changed to 18%. I fully intend to use up my 18% CGT band this year as the rate in my opinion will rise to 20%.

subjecttocontract

https://forums.moneysavingexpert.com/discussion/comment/82148630#Comment_82148630

Thats a good idea but the real concern is how much the higher CGT rate will increase.

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/82148686#Comment_82148686

The real concern for you, or for the economy on the theory that basic rate taxpayers' trades don't move the economic dial much?

Dilbert_Investor

I haven’t thought about them changing capital gains tax on death. Would that be extended to assets left to spouses too I wonder.

I think that raising CGT is one of the few options left, so would be sensible to realise some gains and reinvest in similar funds whilst the rate is known.

I assume there has never been a case where budget changes were retrospective introduced to the beginning of the current tax year?

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82149943#Comment_82149943

"I assume there has never been a case where budget changes were retrospective introduced to the beginning of the current tax year?"

Changing the law retrospectively is considered exceptionally poor lawmaking and the closest they've come is a couple of years ago with the mid-year CGT rate change where the change was backdated to the morning of the announcement before the budget speech. Otherwise the year had split rates, before and after budget day.

Notepad_Phil

https://forums.moneysavingexpert.com/discussion/comment/82149943#Comment_82149943

I haven’t thought about them changing capital gains tax on death. Would that be extended to assets left to spouses too I wonder.

If this was brought in (which I think is doubtful) then I doubt that the spouse would have to pay cgt straight away on any assets left to them, but certainly when they too died then cgt would be based on the original price that it was bought at and not the price when it was passed to the spouse.