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24 Jun 2011
THE LIBERAL DEMOCRATS are drawing up plans for capital gains tax (CGT) to be levied on the sale of homes worth more than £1m in exchange for their support for the scrapping of the 50p tax rate.
Senior LibDems will tell chancellor George Osborne that the scheme must be implemented before the next election if he wants to abolish the 50p tax rate, the Daily Mail reports. Business secretary Vince Cable (pictured) suggested previously that there should be a 1% annual levy on all homes worth above £1m.
Under the scheme, the 28% CGT rate will be levied on profits over and above the £1m threshold. Around 250,000 homes would be above the £1m threshold and last year 7,185 properties were sold for a seven figure sum.
The Mail also reports that VAT on home improvements could be reduced to 5% to encourage owners to renovate rather than sell, while stamp duty could be scrapped for lower earners.
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Visitor comments Add your comment
Lazy reporting
Accountancy Age rehashing a DAily Mail story and presenting it as news.
At least do us the professional courtesy of a source within Whitehall to corroborate your story.
As it appears, owners of normal family homes in parts of London will be hit by CGT when they move house.
Odure and ventilation device will interact if that is implemented.
Posted by: Eleanor, 24 Jun 2011 | 16:34