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CGT Review

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    #11
    Originally posted by ChimpMaster View Post
    I wouldn't worry about it just yet. Especially as the paragraph hasn't been been proof-read.

    ER/BADR was nerfed last time rather than removed entirely because most of the tax advantage was at the £1m+ level. By retaining a lifetime £1m allowance the government still wish to encourage some entrepreneurship (well, so they say...).
    Though having said the above and now having read the report, it's clear that the OTS and government are looking at BADR yet again.

    I hope they don't rush anything into the March 2021 budget, and instead at least spend a few months the following section of the OTS report:-

    3.93 If the government chooses to take this forward, it should undertake a thorough analysis of the types of businesses and taxpayers potentially affected, and engage with relevant industry bodies to minimise the extent to
    which any changes would be likely to distort the choice of how a business is operated or set up in other ways.

    Comment


      #12
      Seems highly unlikely to me that they'd take the political hit (at least among traditional Tory voters) on aligning CGT and income tax and then leave ER behind, untouched.

      Comment


        #13
        Originally posted by ChimpMaster View Post
        Though having said the above and now having read the report, it's clear that the OTS and government are looking at BADR yet again.

        I hope they don't rush anything into the March 2021 budget, and instead at least spend a few months the following section of the OTS report:-

        3.93 If the government chooses to take this forward, it should undertake a thorough analysis of the types of businesses and taxpayers potentially affected, and engage with relevant industry bodies to minimise the extent to
        which any changes would be likely to distort the choice of how a business is operated or set up in other ways.
        So my getting an extra opinion wasn't so disturbing after all.

        Comment


          #14
          Originally posted by heyya99 View Post
          So my getting an extra opinion wasn't so disturbing after all.
          You already have your distribution.
          You have a professional opinion from your accountant, an opinion you presumably paid for.
          You have a professional opinion from your liquidator, an opinion you presumably paid for.
          Your lack of faith in these was disturbing, but I appreciate that liquidation is a stressful event, especially when you have to hand over your working life's worth of bank account to a stranger to manage and distribute for you.

          But anyway, you were fretting because of an OTS report that cannot affect you. Don't worry about it. I would bet $250k on a November FTSE100 4500 Put option that you're OK.

          On a related note, I have been researching into Liquidation with outstanding Directors Loans & ITTOIA05/S415 (because that's what we do on a Sunday) and will be writing up a separate post about that this week.

          Comment


            #15
            Originally posted by ChimpMaster View Post
            You already have your distribution.
            You have a professional opinion from your accountant, an opinion you presumably paid for.
            You have a professional opinion from your liquidator, an opinion you presumably paid for.
            Your lack of faith in these was disturbing, but I appreciate that liquidation is a stressful event, especially when you have to hand over your working life's worth of bank account to a stranger to manage and distribute for you.

            But anyway, you were fretting because of an OTS report that cannot affect you. Don't worry about it. I would bet $250k on a November FTSE100 4500 Put option that you're OK.

            On a related note, I have been researching into Liquidation with outstanding Directors Loans & ITTOIA05/S415 (because that's what we do on a Sunday) and will be writing up a separate post about that this week.
            Thank you for your response. The bit that I needed reassuring on was, even though I have my distribution, I have yet to pay tax on it. I'm lead to believe that tax will be calculated on my personal tax return at the end of the current tax year. So if in the budget at the end of this tax year the chancellor changes CGT, scraps ER, etc, with immediate effect, then I cannot see how my accountant and liquidator can see I'm immune to it. I don't see how my already having my distribution makes me immune.

            Comment


              #16
              Originally posted by heyya99 View Post
              Thank you for your response. The bit that I needed reassuring on was, even though I have my distribution, I have yet to pay tax on it. I'm lead to believe that tax will be calculated on my personal tax return at the end of the current tax year. So if in the budget at the end of this tax year the chancellor changes CGT, scraps ER, etc, with immediate effect, then I cannot see how my accountant and liquidator can see I'm immune to it. I don't see how my already having my distribution makes me immune.
              That’s not how they do it......
              Budgets make changes for the upcoming tax year.
              NOT the current tax year. To do so would be politically disastrous, and would also risk the finance bill not being passed at all.

              And your personal tax is calculated, by you, before Jan 31st on the subsequent tax year. Not the end of the tax year.

              And it’s ‘led’ to believe.

              HTH
              See You Next Tuesday

              Comment


                #17
                Originally posted by Lance View Post
                That’s not how they do it......
                Budgets make changes for the upcoming tax year.
                NOT the current tax year. To do so would be politically disastrous, and would also risk the finance bill not being passed at all.

                And your personal tax is calculated, by you, before Jan 31st on the subsequent tax year. Not the end of the tax year.

                And it’s ‘led’ to believe.

                HTH
                Sort of.

                Provisional collection of taxes - Erskine May - UK Parliament

                But you're right in the sense that major variations to major taxes are typically applied at the start of a new tax year and the budget day resolution focuses on things like customs and excise duties or anti-avoidance measures.

                Comment


                  #18
                  Originally posted by Lance View Post
                  That’s not how they do it......
                  Budgets make changes for the upcoming tax year.
                  NOT the current tax year. To do so would be politically disastrous, and would also risk the finance bill not being passed at all.

                  And your personal tax is calculated, by you, before Jan 31st on the subsequent tax year. Not the end of the tax year.

                  And it’s ‘led’ to believe.

                  HTH


                  Comment

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