Have your say in Chancellor's review of Capital Gains Tax

A pile of cash with a miniature tractor and calculator

Chancellor Rishi Sunak recently wrote to the Office of Tax Simplification (OTS) asking it to undertake a review of the Capital Gains Tax system.

The NFU's head of tax, Michael Parker, has been asked by the OTS to be a member of the consultative committee for this review.

The NFU is now inviting members to take the opportunity to say what they believe is right and wrong with Capital Gains Tax (CGT).

The OTS has published an online survey and a call for evidence to seek views about CGT. It wants to hear directly from individuals and businesses as well as professional advisers and representative bodies about which aspects of CGT are particularly complex and hard to get right, and to hear any suggestions for improvements.

Click here to take the survey

You may wish to respond by 10 August on the first phase of the call for evidence which looks at the principles of Capital Gains Tax.

Responses to the call for evidence can be emailed to b3RzQG90cy5nb3YudWs=.

Why should I respond?

The survey will enable the OTS to hear directly from individuals with experience of dealing with CGT. It is open now and will be available until the end of the summer.

The call for evidence comes in two sections:

  • The first seeks high-level comments on the principles of CGT by 10 August 2020
  • The second and primary section of the document invites more detailed comments on the technical detail and practical operation of CGT by 12 October 2020

The earlier deadline for comments on the principles of CGT will help shape the balance of the work and could put the OTS in a position to provide an interim update on bigger picture issues.

Alongside this, the OTS will also be meeting as many interested parties as it can, online, to hear views directly during the full consultation period.

You may wish to make contact directly with the OTS or alternatively you can contact the NFU which will be seeking to facilitate virtual meetings for groups of members with the OTS.

What is the NFU's position?

This is an opportunity to comment on what you believe works well or less well with Capital Gains Tax.

The first part of the call for evidence has a very short timescale - 10 August is the deadline to comment on the principles. The NFU will respond, but is also urging members to do so.

Members will undoubtedly have a range of views but you may wish to consider:

  • If the rate of CGT is set at the right level
  • Whether or not incentives and reliefs for business investment such as rollover relief and entrepreneurs relief are justified and work well
  • If short term gains should be taxed differently to long term gains given the lack of relief for the inflation
  • If there are any particular issues with partnership gains
  • If the exemption from capital gains on death is justified
  • If the exemption on homes is justified

Of course there are many other areas that members will have experience of and views on, so please do have your say.

Click here to take the survey

Responses to the call for evidence can be emailed to b3RzQG90cy5nb3YudWs=.

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