Fox Evans Chartered Accountants Coventry
Coventry Accountants Blog
A look at the upcoming budget – 22nd June 2010
With the second 2010 Budget now planned for 22nd June, there is much speculation about the likely content. There is also speculation over the timetable of any changes in tax bands and rates.
However, it is likely that the personal income tax allowance will be increased from its current level of £6,475, and this will need to be paid for by tax rises elsewhere. The most likely target for this rise is Capital Gains Tax
At the present time, the rate of Capital Gains Tax is 18%, with a reduction to 10% for certain business-related disposals. When compared to the top rate of income tax at 50%, there is quite a gap, and it is anticipated that the gap will be closed, with the Capital Gains Tax rate matching an individual’s income tax rate.
With this in mind, if you were planning on making a disposal which attracts Capital Gains Tax, then now might be the time to bring forward the date of the sale, in order to take advantage of the lower Capital Gains Tax rate. Remember that individuals receive an annual Capital Gains Tax exemption of £10,100, and this may influence your decision. Remember also that if many people rush to dispose of similar assets at the same time, it may depress the selling price, so the tax issue may not be the only thing to consider.
If the above applies to you, speak to your accountant to clarify the position. If we can help with any tax planning issues, please get in touch.
You can always contact Fox Evans Accounts in Coventry for Free unbiased and impartial advice:
Tel: 024 7696 0710
Email us Here
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