ENTERTAINMENT

Rishi Sunak orders a capital gains tax review after it turns out to be facing a budget deficit of £ 322 billion


Rishi Sunak orders capital gains tax review after it becomes known that the Chancellor is facing a budget deficit of £ 322 billion this year

  • The review examines rules that calculate up to 28 percent of residential property profits
  • It is also examined whether allowances and reliefs could be simplified or deleted
  • Sunak is interested in how profits are taxed compared to other types of income.

A review of the capital gains tax system is ongoing to determine whether it is "appropriate".

Chancellor Rishi Sunak has asked the Tax Simplification Office to conduct the analysis.

Withholding tax is a tax on every profit made on the sale of an asset.

The review examines rules that impose up to 28 percent on profits from residential property and 20 percent on other assets.

The conservative manifesto before the last election promised that there would be no increases in income tax, social security or VAT. In a letter to the OTS, Mr. Sunak said he was particularly interested in how profits are taxed compared to other types of income.

It is also examined whether allowances and facilities, such as the exemption for the sale of your main house, could be simplified or discarded.

In a letter to the OTS, Mr. Sunak said he was particularly interested in how profits are taxed compared to other types of income.

Yesterday's budgetary responsibility figures showed that the Chancellor is facing a budget deficit of £ 322 billion this year.

The review takes place after the government has left little scope to raise funds from other sources.

The conservative manifesto before the last election promised that there would be no increases in income tax, social security or VAT.

However, CGT is a modest source of income for the Treasury and is far behind income tax, social security, VAT, and corporate tax, although it is ahead of inheritance tax.

CGT raised £ 8.8 billion from 2017 to 18.

A Sunak spokesman said, “In recent years, the OTS has reviewed almost all of the major taxes but has not yet reviewed the CGT.

"The Chancellor has now asked OTS to carry out this check.

"The OTS has addressed aspects of the CGT in some previous reports, but this will be the first time that the OTS has looked into this area."

The OTS launched a consultation last night, which will end in October.

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