CGT Changes to be Announced

As a recent website note forecast, the Chancellor is expected to make an announcement later today on his CGT changes.

Press reports point to a new initial 9% rate on the first £750,000 of gains on business assets but offer no detail on any potentially important points of definition.

It seems he will press ahead in removing indexation relief on inflation gains to 1998 so that new rates will apply to all gains since acquisition, 1982 or any earlier date that may be relevant in some cases. That means that even where the slightly lower rate of 9% may apply, farmland sales will generally face higher tax charges from this April. However, the tax on significant development gains may go down slightly to the extent that they are within the £750,000 starting band.

We will advise more whn we know more but the full picture may perhaps not be clear until the legislation to implement whatever is announced is published.