UK Conservatives raise Capital gains tax to 40%

M

MohdSalleh

Coalition plans capital gains tax increase

By Jean Eaglesham, Chief Political Correspondent

Published: May 12 2010 00:05 | Last updated: May 12 2010 00:05

Capital gains tax will be increased significantly for non-business assets, as part of a radical package of tax reforms agreed by the new Conservative-Liberal Democrat coalition government.

The 18 per cent rate of tax on gains on non-business assets will be increased to close to the 40 per cent higher rate of income tax, meeting a central plank of Lib Dem policy, according to Tory insiders.

The revenue from the tax rise will be used to help fund a significant increase in the income tax threshold to help lower-paid people, taking effect in April. The new government, with George Osborne as chancellor, will also agree to subsequent real terms increases in this threshold, as part of a longer term goal of meeting the £17bn Lib Dem policy of raising the income tax exemption to £10,000.

http://www.ft.com/cms/s/0/066a8a34-5...44feab49a.html



LOLLLL, this is a conservative govt. Hello Europe.

:D :D
 
Quote from MohdSalleh:

Coalition plans capital gains tax increase

By Jean Eaglesham, Chief Political Correspondent

Published: May 12 2010 00:05 | Last updated: May 12 2010 00:05

Capital gains tax will be increased significantly for non-business assets, as part of a radical package of tax reforms agreed by the new Conservative-Liberal Democrat coalition government.

The 18 per cent rate of tax on gains on non-business assets will be increased to close to the 40 per cent higher rate of income tax, meeting a central plank of Lib Dem policy, according to Tory insiders.

The revenue from the tax rise will be used to help fund a significant increase in the income tax threshold to help lower-paid people, taking effect in April. The new government, with George Osborne as chancellor, will also agree to subsequent real terms increases in this threshold, as part of a longer term goal of meeting the £17bn Lib Dem policy of raising the income tax exemption to £10,000.

http://www.ft.com/cms/s/0/066a8a34-5...44feab49a.html



LOLLLL, this is a conservative govt. Hello Europe.

:D :D
More...
while it is a nice perk for investors there is no economic reason cap gains income should not be at the same rate as earned income is taxed.
as short term traders we should not object since we are already paying regular income tax rates on our cap gains for equity trades.
 
Quote from Free Thinker:

while it is a nice perk for investors there is no economic reason cap gains income should not be at the same rate as earned income is taxed.
as short term traders we should not object since we are already paying regular income tax rates on our cap gains for equity trades.
More...

The brits already have stamp duty imposed as well on stock transactions, this is a DARK day for capitalism.
 
and no mention of any inflation relief either.

so if you hold an asset, like a second property for 15 years, and it doubles in value due to inflation you get hit with 40% tax when you made very little gain in real terms
 
What is the logic behind taxing investment and speculation? If I'm the one taking the risk, why should the government be allowed to take part of my profit ?

Thank "Invisible Man in Sky" for the underground economy where I will sell my gold without reporting it.
 
Quote from Covertibility:

What is the logic behind taxing investment and speculation? If I'm the one taking the risk, why should the government be allowed to take part of my profit ?

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do you have any more risk than any other business owner?
 
Quote from Free Thinker:

do you have any more risk than any other business owner?
More...

capital gains tax on business assets is likely to be around half the rate for non business assets.

shares and futures are not classed as business assets.
 
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