The capital gains tax annual exempt amount should be reduced from £6,000 per annum to £1,000 per annum.
Since the exempt amounts that might be earned from trading and property activity within income tax law are now £1,000 per annum it makes sense that the same limit be used for capital gains tax purposes.
Why should a tax allowance on capital have anything at all to do with a tax allowance on income?
The other day we were able to deduce the size of his ISA account. Now we have a good idea about his capital gains too. It would seem that for a “accountant” who claims knowledge in all matters financial he is not doing fantastically well with his own savings.
“The capital gains tax annual exempt amount should be reduced from £6,000 per annum to £1,000 per annum.”
It’s being reduced from £6,000 to £3,000 anyway from next 6th April. He’s really scraping the barrel now.
And this whole project (basically cutting and pasting stuff he’s been droning on about for years) is just to ‘justify’ the grants he got from gullible charities. There’s nothing new at all.
The tax I particularly enjoy at the moment is the poll tax on motor cars imposed by some cities – targeted particularly at the sort of motor cars that poorish people drive.
The annual vehicle tax is a sort of poll tax too, and so is the TV licence.
Remember when Labour was dead against poll taxes?
It might be ‘vaguely’ sensible if you could carry forward unused allowances, so that after 9years, you would have a £10k allowance to offset any gains in that year.
Plus of course you’d want an indexation allowance too, else you are effectively taxing real world losses.
Otherwise you are simply encouraging short term churning, with liquidation and reinvestment each year, which makes no sense for anyone.
“Why should a tax allowance on capital have anything at all to do with a tax allowance on income?”
Nigel Lawson explained that long ago. When those city folk were awarded bonuses in gold bullion that, mysteriously attracted NIC but not income tax, and could be sold thereby realising capital gains that had a much higher tax threshold
Whoops, a lower threshold but a 10% lower rate. But the thing was that you were potentially using another tax threshold and also getting taxed at a lower rate.
The tax I particularly enjoy at the moment is the poll tax on motor cars imposed by some cities – targeted particularly at the sort of motor cars that poorish people drive.
A mate who lives in Highgate drives a 20yo Volvo (petrol) estate. He was surprised and delighted to find that it’s ULEZ compliant.
“Johnny Mercer received £8,000 in taxpayer cash after sacking by Liz Truss”
Good grief! The Guardian has discovered that government money means the taxpayers’ money. (At least in special circumstances.)
The Great AndrewC
And this whole project (basically cutting and pasting stuff he’s been droning on about for years) is just to ‘justify’ the grants he got from gullible charities. There’s nothing new at all.
That’s exactly my take – there’s nothing even vaguely new here – and I think there’s still about 15 of these wheezes to go – to call it ‘old hat’ would be generous. Not a single one of these allegedly ‘tax raising’ measures will raise anything like the amount he speculates it will in the first year, let alone annually. In some ways it’s rather sad that a grown man in his 60s is forced to recourse to this kind of adolescent crap.
Then you realise that it’s Murphy and he is clearly closer to the edge, mentally than he ever has been.
@Scrambled egg – “liquidation and reinvestment each year, which makes no sense for anyone.”
Except brokers who get to charge transaction fees.
“Johnny Mercer received £8,000 in taxpayer cash after sacking by Liz Truss”
Why did she need a lyricist anyway?
@ ChrisMiller
My 20 year old 5 litre Merc S500 is similarly exempt. I always knew it was ecologically friendly.