Le entrate fiscali delle plusvalenze diminuiscono dopo grandi tagli di indennità
https://www.ft.com/content/8d8e1848-5a24-49a1-a695-2800345ff425
di Low_Map4314
Le entrate fiscali delle plusvalenze diminuiscono dopo grandi tagli di indennità
https://www.ft.com/content/8d8e1848-5a24-49a1-a695-2800345ff425
di Low_Map4314
6 commenti
Utterly predictable.
Cut CGT allowances and those with large gains simply sit on those gains until a more friendly government is in power.
Its almost like these policies were written on a fag packet, absolutely no consideration beyond first order.
Tax private education
Aim – stick it to the rich and raise revenue.
Outcome – rich schools get richer, bigger divide, mass movement to state sector and job losses.
More national insurace tax
Aim – raise more money
Outcome – companies freeze hiring, double down on AI.
CGT tax
Aim – more Tax receipts on gain realisation
Outcome – sitting on assets and less overall tax.
Its really not rocket science but whoever advising Rach needs to get their act together.
Is anyone actually surprised? People resent having to pay tax on selling their own stuff when they already paid income tax to buy that stuff.
Now we need to bring in a wealth tax to learn yet again that they reduce tax revenues. It would be good at some point if we could learn from history.
Before people get on their soap box about tax rises reducing receipts, there are other forces driving the reduced receipts and the reduction was forecast by the OBR. A significant increase is expected this year.
Corporate transaction volumes have been falling globally due to Covid related factors and are expected to pick up significantly this year. For obvious reasons there was very little activity in 2020 and that pent up volume was largely released across 2021 and 2022. The slow down across 2023 and 2024 was entirely expected given the volume of transactions that happened in 21/22.
This year we’re already seeing an increase in transaction volumes, especially involving Private Equity who are now having to deploy funds they’ve been sat on for a few years. This sort of variance across 2021 to 2026 has nothing to do with UK tax regulations, it’s driven by global trade conditions. I suspect these factors can be applied to other chargeable gains as well. I daresay estate agents / solicitors were drowning in work in 21/22 with the property market cooling off in recent years.
As far as the changes Labour made are concerned there are two short term effects:
1. As the FT article notes, non-doms are selling up and leaving the country to run away from their IHT obligations. This means a lot of chargeable gains are being realised which will bump up the coffers for the 25/26 tax year.
2. The BADR rate will increase from 6 April 2026 and this will encourage a lot of business owners to sell up. As noted above, Private Equity have funds to deploy so there are going to be plenty of willing sellers and buyers that will be looking to get corporate transactions over the line in the 25/26 tax year.
Nobody could have predicted this. If only there was some kind of laffer curve.