Government needs to reintroduce indexation relief if it raises CGT rates
Plans to review Capital Gains Tax (CGT) have raised speculation that headline rates may be increased later this year.
Boodle Hatfield, the leading private wealth law firm, says that if the Government increases CGT rates, it should also consider bringing back indexation relief. This relief was designed to spare individuals being taxed on gains which arose purely as a result of inflation. At present investors can be charged CGT even though they have made no real gain (i.e. after inflation)…(click for more)