TaxCorporate TaxAdvisers to suffer from CGT changes

Advisers to suffer from CGT changes

Advisers will have to get their skates on to manage their clients' tax affairs in the wake of the impending changes to CGT

The pre-Budget report is bad news for accountants, who will find themselves
under tremendous strain following the chancellor’s announcements, said Smith
& Williamson.

Changes to the capital gains tax regime will see advisers frantically looking
how to manage their clients’ affairs.

‘Some [advisers] would have given very recent advice on this, or are working
out details for a client or even waiting for a bill to be paid on CGT advice,’
said Smith & Williamson national tax director Richard Mannion.

He also said it would be difficult to work out the effect of the new IHT dual
rate band when there has been a substantial gap between the death of a husband
and wife, complicated further if the partner that died had relied on a
proportion of their nil rate band.

‘Where one partner has died in 1982 for example, to reconstruct the nil rate
band from then will be horrendous.’

While tax simplification brings about winners and losers, Mannion said that
it appeared there were more losers than winners in terms of the flat rate of
CGT.

Darling’s announcement of three reviews into easing tax red tape ‘was not
earth-shattering’, added Mannion.

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