Increase of capital gains tax to help pay for Covid-19
- AuthorCaroline Dowding
It was announced on the news yesterday that the Chancellor is considering increasing capital gains tax to help pay for Covid–19. In fact this is not new news and has been mooted for some months. Many made plans back in March for their affairs to be put in order as it was proposed that changes may come in the Spring budget. The pandemic meant that matters were placed on hold.
The effect for farming families is, however, that the disposal of land could generate a large tax bill. It will undoubtedly have huge implications on succession planning. The proposal is that capital gains tax might be brought in line with income tax, which for many will increase the rate from 20% to 45%. It has also been proposed that the re-basing of the cost value at date of death may also be removed. It is yet to be seen how this will, in practice, work as on the face of it those that inherit land could also inherit a tax bill which could be hugely detrimental to the farming community, in particular if business structures or not in place or up-to-date.
If you require any further information, please contact Caroline Dowding on 01206 217394 or firstname.lastname@example.org.