I have had several clients ring me in a panic this week about capital gains tax (CGT) and the “changes” they have read about in the newspapers.
They have heard the annual CGT allowance is being slashed from £10,100 to £2,500. They have heard the rate of CGT will rise from 18% to 50%, and they have heard all this will be backdated to the 6th April 2010, messing up deals that have already been done.
The simple fact is we will not know until the first budget under the coalition which is scheduled for 22nd June 2010. Any “changes” you hear about until then are pure speculation and scaremongering by journalists with nothing else to write about. Even after the budget, the coalition still has to get the Finance Act voted through parliament to make it into a law and with things hung as they are – that is not guaranteed like it used to be under labour.
So. Sit tight. DO NOT PANIC. Just wait and see what the new government propose in the budget. Then, if it actually becomes law, and, if there is any need for detailed thoughts about how it will affect you, please get in touch and I will explain it.
Remember – nothing has changed yet and when it does – you will read about it here first (the plain english version that is!).
Lastly, I apologize for not posting the tax saving tips yet but with the uncertainty around the election and the scaremongering about tax in the media, I have decided to wait until we all know which way things are going under the new government before settling down with articles like that again. Who knows, if there are as radical changes to the tax system coming as everyone is predicting (hoping), perhaps I will not need to publish any more tax saving tips!!