6th June 2023
Katharine Arthur, Partner and Head of Private Client, has featured in the FT Adviser, commenting on the continual rise in Capital Gains Tax (CGT) receipts.
HMRC’s latest tax figures show that CGT receipts continue to grow, rising by 96 per cent over the past five years. This growth is three times higher than the increase in Inheritance Tax (IHT) receipts over the same period.
Inflation has been a key driver behind recent tax increases, moving taxpayers into new tax thresholds as asset values soar. However, the reduction of the annual exemption for CGT from £12,000 to £6,000, which came into play as of April 6 2023, is likely to increase CGT receipts further.
With more people being brought into new tax thresholds, it means hundreds of thousands of new taxpayers will now be liable to pay CGT. The concern however is that not everyone who is now liable to pay CGT will know that they need to. Katharine notes: “Many taxpayers may be unaware that gifts of a property or shares, for example, to family members can be subject to CGT.”
Katharine’s comments look at HMRC’s ability to manage the additional administrative burden of an increased number of tax returns. To read Katharine’s piece in full, you can read more on FT Adviser.
If you have any queries, please contact Katharine directly or a member of the Private Client team.