CGT REVIEW proposals discussion recorded Live on YouTube

by Mark Alexander

16:38 PM, 12th November 2020
About 3 weeks ago

CGT REVIEW proposals discussion recorded Live on YouTube

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CGT REVIEW proposals discussion recorded Live on YouTube

The Office of Tax Simplification has published its proposals to Chancellor Rishi Sunak in regards to CGT.

A link to the 131 page document can be found HERE.

The Breaking News Live video was hosted by Ranjan Bhattacharya and myself. We discussed our initial thoughts on the proposals, specifically in regards to how they could affect Landlords and Property Investors, and what can be done before the next Budget and thereafter if the proposals are accepted in their current form.

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Comments

david porter

10:34 AM, 13th November 2020
About 3 weeks ago

The BBc are running that Capital Gains tax is going to be doubled.
As we know if people have invested in retail, hospitality or real estate of the retail type are well into the red. If they were to sell up they would create a CGT loss which would offset future CGT.
These tax credits could be more valuable than these investments currently are.
Perhaps never having to pay CGT again. There are so many on bulletin boards cheering on thinking that this is a slap in the face for the wealthy.

Ed Regent

12:22 PM, 13th November 2020
About 3 weeks ago

I'm still a private owner of my B2L portfolio of leasehold apartments but most of them are in blocks which have failed building materials/fire safety regs so are basically ‘worthless’, certainly when it comes to mortgaging purposes. My question is, can I incorporate and use a zero value for these ‘blighted’ flats? If not, how would it work?

Monty Bodkin

15:59 PM, 13th November 2020
About 3 weeks ago

You've missed out this crucial part;

Recommendation 2
If the government considers more closely aligning Capital Gains Tax and Income Tax
rates it should also:
• consider reintroducing a form of relief for inflationary gains

Dr Rosalind Beck

18:29 PM, 13th November 2020
About 3 weeks ago

Reply to the comment left by Monty Bodkin at 13/11/2020 - 15:59
Yes, it would be good to know what exactly that would mean - whether it would be backdated as the CGT is to the point at which the property was bought. I'm not good with these things but just looked at an inflation calculator and it stated £1 in 2000 is now equivalent to £1.75. Does this mean that 75% of any gain would be discounted?

Monty Bodkin

21:54 PM, 13th November 2020
About 3 weeks ago

Reply to the comment left by Dr Rosalind Beck at 13/11/2020 - 18:29It's definitely on the cards. We'll need to wait and see.
I don't think making panic decisions is ever a good move.

Chris Novice Shark Bait

12:26 PM, 14th November 2020
About 2 weeks ago

These comments are all welcome, speculative and necessary at this premature time. When section 24 was imposed upon us we had considerable carry forward losses in the income tax arena, and these are being eroded circa £120K, but are protecting us currently as we are not incorporated. It is still daylight robbery, just not showing in our current account......yet. I had hoped, with all fingers and toes crossed that, as in Ireland the section 24 would have to be reversed at some point as homelessness would escalate. These were pre-covid thoughts.
My property specialist accountants advised me that if we incorporated, we would lose these carry forward losses, so we would do better to utilise them, initially and re-think later about incorporating.
Nevertheless what may I ask will happen to carry forward crystallised C.G.T. losses? This would seem to be important, but only if future Capital gains were to come to fruition. Any thoughts or ideas? I do not trust any government to consider the unintended collateral damage they may cause.

TrevL

18:15 PM, 15th November 2020
About 2 weeks ago

If this, combined with the temp stamp duty cut is not the ultimate indicator to get out, I don't know what is...the mini boom in house prices is the perfect opportunity to cash out.....take it, don't wait to see, it will be too late by then.

Monty Bodkin

1:03 AM, 16th November 2020
About 2 weeks ago

Reply to the comment left by TrevL at 15/11/2020 - 18:15
Nah, nothing to worry about if you’ve got low LTV and good yields.

Panic selling is never a good idea, particularly when based on speculation.

TrevL

9:25 AM, 16th November 2020
About 2 weeks ago

Reply to the comment left by Monty Bodkin at 16/11/2020 - 01:03
Agreed if you have good LTV and yeilds, but what if not?

Chris Novice Shark Bait

11:21 AM, 16th November 2020
About 2 weeks ago

..........and will the government seek to alter CGT carry forward losses? Would Mark Alexander please like to comment?

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