Make sure you don’t miss the deadline to claim important allowances and reliefs.
16/11/2021
Jonathan Brownlow
Wealth Planning Director
Proposals to double capital gains tax rates and cut back on related allowances have been rejected for now by the Treasury, which has said it will not implement reforms set out by the Office of Tax Simplification (OTS).
Despite the Treasury’s reprieve, the consensus is that the UK’s deficit coupled with the Conservative’s pledges to “level up” continue to signpost a tougher tax regime in years ahead.
Capital gains and death duties are both tipped to be likely targets for increased tax take. The OTS’s main recommendation was that capital gains tax (CGT) rates should rise to align with income tax rates, a move that could have seen rates rise by more than 100% for some investors.
Shelving plans to implement these increases for now gives investors leeway in which to arrange their affairs while the current CGT regime – which is relatively generous compared with historic rates – remains in force.
We have summarised the valuable allowances and reliefs that will be lost if they are not used before 5 April 2022 below.
Please contact us for further information.
These figures are based on current rules and our understanding of what the allowances will be in the next tax year.
Statements concerning taxation are based on our understanding of the taxation law in force at the time of publication. The levels and bases of taxation may change. You should obtain professional advice on taxation where appropriate before proceeding with any investment. Readers should seek professional advice for their individual circumstances.
Wealth Planning Director
Jonathan joined in 2016 and is a Wealth Planning Director, providing advice to clients on pension and tax planning issues. Previously he worked at RBC, HSBC, and a privately owned wealth management firm specialising in advice to financial services professionals. Jonathan has 20 years’ experience, is a Fellow of the Personal Finance Society and a Chartered Financial Planner.
This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated.
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