CGT review should focus on reliefs and rates

Nov 16, 2020

That’s according to the NI Tax Committee’s updated position paper on capital gains tax (“CGT”) which was recently submitted to the Office of Tax Simplification in response to its review of CGT.

The Committee also recommended that:-

  1. The UK Government should undertake a more detailed annual review of tax reliefs in the UK; and
  2. HMRC should launch a widespread education campaign in respect of both the non-residents CGT regimes and the 6 April 2020 changes for UK residents.

In response to its CGT review, the OTS has now published its first report which highlights ways CGT can distort behaviour, and sets out a framework of policy choice about the design of the tax for government. The second report, responses to which closed last week on 9 November, is expected to be published in early 2021.