Question
Your article on the various parties Manifestos was very interesting. Am I right though that the Lib Dems are also planning to reduce the Capital Gains threshold from £10,100 to £2,000 per person? They say it's to hit the rich but we have a small investment which we are planning to sell to help pay our credit cards so I don't count ourselves as "rich".Answer
You’re quite right. While not mentioned in their manifesto, LibDem tax plans do include cutting the current capital gains tax annual allowance from £10,100 to just £2,000 (I've amended the article).
I share your view that this would be a cut too far, especially as their proposals also include taxing gains at the same rate as income tax. While investors can obviously avoid capital gains tax by holding their investments in pensions and individual savings account (ISAs), for those who choose not to this effective tax rise would be penal.
On a wider note I fear this move could discourage investment, which would be bad news all round.
If you plan to sell then it’s probably a good idea to do so, from a tax point of view at least, before the election.
Your article on the various parties Manifestos was very interesting. Am I right though that the Lib Dems are also planning to reduce the Capital Gains threshold from £10,100 to £2,000 per person? They say it's to hit the rich but we have a small investment which we are planning to sell to help pay our credit cards so I don't count ourselves as "rich".Answer
You’re quite right. While not mentioned in their manifesto, LibDem tax plans do include cutting the current capital gains tax annual allowance from £10,100 to just £2,000 (I've amended the article).
I share your view that this would be a cut too far, especially as their proposals also include taxing gains at the same rate as income tax. While investors can obviously avoid capital gains tax by holding their investments in pensions and individual savings account (ISAs), for those who choose not to this effective tax rise would be penal.
On a wider note I fear this move could discourage investment, which would be bad news all round.
If you plan to sell then it’s probably a good idea to do so, from a tax point of view at least, before the election.
Read this Q and A at http://www.candidmoney.com/questions/question183.aspx
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