TaxCorporate TaxFar reaching consequences for CGT changes

Far reaching consequences for CGT changes

Multinational companies and property investment companies will be the hardest hit if the Treasury moves to close tax loopholes on capital gains.

Changes to capital gains tax planned

Under proposals to modernise company tax law, the Treasury is looking at ditching the capital gains regime for companies, meaning that UK-based multinationals would no longer be exempt from paying tax on certain overseas subsidiaries.

Under the proposal, gains on capital assets would be taxed as income.

Property development companies could find themselves being taxed on unrealised gains. Under its proposed new regime, profits and losses would be taxed according to the amounts recognised in company accounts and based on market valuation – a measure which all property companies must adopt according to International Accounting Standards by 2005.

Analysts told the FT this would be the ‘death knell’ for the UK property industry

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson