Capital Gains Tax is a tax on the profit when you sell (or 'dispose of') something (an 'asset') that's increased in value. The Office of Tax Simplification (OTS) has published a review of the tax, commissioned by Chancellor Rishi Sunak. Currently, CGT is charged at a basic rate of 10% or a higher rate of 20% on the disposal of assets.

1. HOW COULD CHANGES
TO CAPITAL GAINS TAX
AFFECT YOU
Morgan Reach

2. Capital Gains Tax
• Capital Gains Tax is a tax
on the profit when you
sell (or 'dispose of')
something (an 'asset')
that's increased in value.
• It's the gain you make
that's taxed, not the
amount of money you
receive.
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3. Government urged to overhaul CGT
• The Office of Tax Simplification
(OTS) has published a review of
the tax, commissioned by
Chancellor Rishi Sunak, which
revealed £14bn could be raised
by making these changes.
• Currently, CGT is charged at a
basic rate of 10% or a higher
rate of 20% on the disposal of
assets, with rates of 18% or 28%
applying to residential property.
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4. Tax Director OTS, added:
• If the Government considers the simplification
priority is to reduce distortions to behaviour, it
should consider either more closely aligning capital
gains tax rates with income tax rates, or addressing
boundary issues as between capital gains tax and
income tax.‘
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5. Calculating Capital Gains Tax
• Capital Gains Tax is a tax on the profit when you
dispose – or sell – an asset that’s increased in value.
It’s the gain you make that’s taxed, not the amount
of money you receive.
• While the top bands of income tax are both 45% and
40% for people earning more than £50,000, the
average CGT paid on the sale of assets is only around
15%.
• Morgan Reach App includes a Capital Gains Tax
calculator.
https://morganreach.com

6. Contact Morgan Reach
• Our tax experts can provide the clarity you are
seeking. We can review or might be able to reduce
your tax bill if you fear you are paying too much tax,
contact us through one of below.
• Phone:
– 0121 236 0777
• Email:
– info@morganreach.com
• Website:
– https://morganreach.com