Treasury clamps down on capital gains tax
Governments attempts to clarify rules on CGT on foreign income
The government has announced a clampdown on the capital gains tax payable on
income earned overseas.
Stephen Timms, financial secretary to the Treasury the changes would ake
effect 16 December and would be included as part of the Finance Bill 2010.
The changes attempts to deal with capital gains tax losses that the
government believes are artificially high.
A statement from the minister said: “These changes prevent the creation of
capital gains tax losses which arise in certain circumstances from transactions
of foreign currency bank accounts.”