Chancellor asks OTS to review capital gains tax

In a letter to the OTS, the Chancellor requested that the independent office review CGT and aspects of the taxation of chargeable gains in regard to individuals and small businesses.

Mr Sunak requested that the review identifies and offers advice on the opportunities to simplify the taxation of chargeable gains to ‘ensure the system is fit for purpose’.

In the letter, the Chancellor said that he would be interested in proposals from the OTS on the regime of allowances, exemptions, reliefs and the treatment of losses within CGT, in addition to the interaction of how gains are taxed compared to other types of income.

The Office of Tax Simplification has published a call for evidence in the form of an online survey, which seeks views on CGT. The OTS wants to hear from businesses, individuals, professional advisers and representative bodies about which aspects of CGT are complex and difficult to get right, as well as suggestions on how the tax can be improved.

Amy Telford, of Harvey, Telford & Bates comments:

“The call for evidence from the Office of Tax Simplification comes in two sections: the document firstly seeks high-level comments on the principles of capital gains tax by 10th August 2020 and the second and primary section asks for more detailed comments on the technical detail and practical operation of CGT by 12th October 2020.

This is the perfect opportunity for businesses and individuals alike to raise their concerns.”

If you require assistance on capital gains tax, or would like help regarding anything else, please call us on 01743 462604, or email [email protected].

Visit the website here and view the letter here