CIOT: Low Incomes Tax Reform Group welcomes CGT exemption freeze

CIOT: Low Incomes Tax Reform Group welcomes CGT exemption freeze

CIOT: Low Incomes Tax Reform Group welcomes CGT exemption freeze

The Low Incomes Tax Reform Group (LITRG) has welcomed today’s announcement that the annual exemption for capital gains tax will not be reduced from its current level of £10,100, and that the rate of tax for any basic rate taxpayer remains at 18% so that the burden of any increase in rates falls mainly on those with higher incomes.

Robin Williamson, Technical Director of LITRG, commented:

“For those on the very lowest incomes capital gains tax is usually an irrelevance. However, when governments alter the rules for the wealthier sections of society, those lower down can get swept up in the additional bureaucracy that follows.”

However, LITRG is disappointed by the increase in the rate of tax to 28% for personal representatives of deceased persons.

Robin Williamson added:

“A death can bring unexpected capital gains tax consequences, and strikes the poorer as well as the wealthier taxpayer.”

However, LITRG welcomed the confirmation of the previous Government’s announcement that adult placement carers will not face a bill for capital gains tax when they sell their home in which they have provided care.

Notes to editors

1. The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.

2. The CIOT is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

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George Crozier
External Relations Manager

D: +44 (0)20 7340 0569
M: +44 (0)7740 477374
The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk