Capital Gains Tax Remaining At 18%
In the Budget on March 24th the tax applied to Capital Gains over the annual limit has not altered from 18% flat rate. This is good news as the outside views were that the tax rate for Capital Gains Tax (CGT) would be increased in the budget. However, as it was likely that there would have been a considerable amount of selling in order to lock in gains at the lower rate before the end of this tax year (1st April 2010) this may have had an influence on the decision.
Whilst it is good news that the rate is unchanged, should there be a change of Government in the May election then another budget will take place 50 days after. With the mounting UK debt I cannot see CGT being left at 18% for long. Where possible we are using tax free allowances to reduce ongoing CGT exposure.