Expert views on Budget 2016
By International Adviser, 17 Mar 16
Members of International Adviser’s Tax & Technical Panel give their views and insights on chancellor George Osborne’s latest budget announcement.
Good news for UK Trustees as CGT rate cut
“The chancellor revealed plans to cut the rate of CGT from April 2016. This will see the top rate of CGT fall from 28% to 20%. Although UK trustees will not benefit from the new £5,000 dividend allowance, they will enjoy a reduction in the rate of CGT they will pay. Gains from shares and collective investments will be taxed at 20%.
“The new rates will not apply on the sale of second homes which will remain taxable at 28%. And Landlords will not, therefore, be able to hold their property portfolios within a trust to secure a lower rate of CGT. Gains on disposals of residential property by trustees will also be payable at the higher rate. However certain trusts may qualify for Principle Private Residence Relief where a beneficiary continues to live in the property as their main residence.”
Tags: Budget | CGT | Tax Avoidance | UK Adviser
