The Office of Tax Simplification (OTS), an independent adviser to the Government, has been asked by Chancellor, Rishi Sunak to review Capital Gains Tax (CGT) to identify any potential administrative and technical issues and need for reform.
It is inevitable that taxes will have to rise to meet the cost of supporting the British economy through the COVID-19 pandemic, and this review is likely to use CGT as a way of increasing revenue for the Government.
We expect the report, to be released in early 2021, to make the following recommendations:
Whilst the Government has commissioned the report, it is not obligated to accept its findings but, at some point, it will have to turn its attention to how to cover the cost of the pandemic.
We expect that clients will be considering accelerating their restructuring or exit strategy in preparation of the increase in tax rates in the near future.
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