Commenting on the changes to Capital Gains Tax Dermot Callinan, Head of Private Client, commented:
“The Chancellor has made it even more attractive to create wealth through capital gains rather than earnings. In a surprise move the Chancellor has announced that the top headline rate of CGT is to reduce to 20% for higher rate taxpayers on all gains apart from on residential property or "carried interests".
“The details are to follow, but this will enable all investors to benefit by realising the profit on the sale of shares and other assets at the reduced rate of tax.
“Not only do these very substantial reductions bring us close to the position in 2008, they are also forecast to cost the Treasury £2.8bn over the next five years.”
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