From today's CityAM:
Cameron defended plans to introduce a new higher rate of capital gains tax (CGT), despite growing anger in the City. The proposals, which would see capital gains taxed at a similar rate to income, would see CGT jump from 18 per cent to 40 per cent for some gains...
However he pointed out there would be generous allowances for business assets that would help "light the flames of entrepreneurialism". "What we've said is there's a very big difference between the capital gains that someone [makes] on a second home, which is not necessarily a splendid investment for the whole economy, and business assets."
Correct. Building up a business is risky; is a lot of work; and adds to the nation's overall wealth. Simply watching the value of your land and buildings rise in value price is pretty much the opposite on all counts.
* "Wine in the morning, and some breakfast at night..."
Monday, 17 May 2010
David Cameron: Beginning To See The Light*
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7 comments:
Seems to me he's only putting the regime back to what it was under the last Conservative government. Can't see what all the fuss is about.
The 18% rate only came in about two or three years ago, but the old Tory system did have the advantage of taxing gains only after correcting for inflation.
No I think that it is 'whine all the time' M, this is Britain after all?
Plane-loads of leftists and all that.
Small issue with the post.
"Simply watching the value of your land and buildings rise in value..."
I don't think that they do rise in 'value'. Price, possibly. Value, not really.
Anon, D, exactly. The Badger pre-announced the 18% rate (effective April 2008) in October 2007 in a desparate attempt to stop BTLers and owners of second homes from flooding the market and speeding up the house price crash.
C, it's a song by Velvet Underground.
L, good point, I have amended.
Its unthink, do not support it:
The return to business investment is a capital gain on Interest. It should be zero taxed
The return to an economic land investment is not a capital gain at all, it is rent. It should be 100% taxed
It shows there are no economist in the new Coalition of the Feckless
Right, well let's see what he does for business assets.
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