If the Office of Tax Simplification gets its way, Landlords could be hit with a ‘taxing’ Capital Gains bill
In case you missed this, back in November The Office of Tax Simplification published a report ‘simplifying by design’ that outlined a number of recommendations to overhaul Capital Gains Tax.
I’m baffled about where the simplifying features lie within this but I do see how if some of their suggestions are taken up it could certainly simplify landlords portfolios. I suspect many may be less than eager to increase them further if the measures below are implemented.
Warning, this may leave a bad taste in your mouth.
| Current Capital Gains Tax | OTS Recommendations |
| Basic rate taxpayers pay 18 per cent | Basic rate taxpayers 20 per cent |
| Higher rate taxpayers pay 28 per cent | Higher rate taxpayers 40 per cent |
And if that isn’t depressing enough…
The annual amount that’s exempt from Capital Gains Tax, which currently stands at £12,300 could be lowered to as little as £2,000 under the proposals.
Now, dry January may be over but don’t hit the bottle yet, this is all mere conjecture, but I’m a great believer in preparing for the worst, then anything else is a bonus.
Peppermint, anyone?
