A capital gains tax warning has been issued, advising savers to act quickly to avoid a “much larger bill.”
CAPITAL GAINS TAX REFORMS ARE POSSIBLE IN THE NEAR FUTURE, implying that business owners must move quickly to avoid “significantly higher” costs, according to an expert.
The UK economy appears to be on track for a better year in 2021, with company confidence reaching new highs not seen since April 2017. According to the latest Lloyds Bank Business Barometer, employers in England’s North West and East experienced the greatest boost in confidence. While several acknowledged that staffing shortages in specific businesses remain a problem, there is a lot of hope for the economy to rebound.
Despite the excellent news, Chancellor Rishi Sunak is still attempting to collect revenue through tax measures to pay for pandemic expenditure.
This has created a discussion about the best approach to go about it.
Many have called for wealth taxes, such as capital gains and inheritance taxes, to be altered in order to help the Treasury raise revenue.
According to recent rumors, capital gains tax could be harmonized with income tax.
Mark Selby, National Head of Corporate Finance at Azets, the UK’s largest regional accountancy firm and a business advisor to small and medium-sized firms, advised business owners to act quickly to avoid a potential increase.
In July, he said: “While rumored changes to Capital Gains Tax have yet to materialize, it remains a politically soft target, and we believe there is a rather high possibility of reform this autumn or in spring 2022.”
“Business owners who are already preparing to sell or depart their company should consider moving through with their preparations and speaking with an advisor sooner rather than later to avoid a significant tax consequence.
“The epidemic has provided opportunity for many enterprises to trade at or above normal levels and exhibit a robust, resilient business strategy.
“However, delaying a sale to achieve growth goals may be pointless if tax rises surpass value growth.”
HM Revenue & Customs collected record sums of capital gains tax in the 2019-2020 tax year, as analysts projected the figure would continue to increase.
Last fiscal year, the government received £9.9 billion from the wealth levy, a three percent increase.
Despite the fact that the number of persons paying the tax has decreased by 6% to 265,000, the number of people actually paying the tax has increased.
The majority of capital gains tax revenue comes from a tiny group of high-income people.
In 2019-20, 41% of capital will be invested. “Brinkwire News in Condensed Form.”