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An Insight to a New Government and Tax:

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An Insight to a New Government and Tax:

Income tax and national insurance, under the current government tax thresholds for income tax are frozen until 2028.

 So, what could be changed under a Labour government? Although Labour has not said it will it and has remained silent on the matter of capital gains tax.

But what would happen if the CGT rate was increased?

CGT rates could be equalized with the marginal income tax rate, as Chancellor Nigel Lawson did back in 1988. This would double the CGT rate for higher rate taxpayers to 40% and even more for additional payers to 45%. Residential property gains currently attract a higher rate of 24% from 6 April 2024. Therefore, if an increase in CGT was implemented the increase would boost the government’s income tax considerably.

What could be done? If CGT rates were to increase, one way could be if losses from prior years had accumulated. You can use losses from prior years to reduce your liability, you have up to four tax years to report a loss to HMRC, but the losses can be brought forward indefinitely.

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