TaxCorporate TaxCapital gains tax avoidance costs Treasury £1bn a year, says Cameron

Capital gains tax avoidance costs Treasury £1bn a year, says Cameron

CGT avoidance a billion pound problem, says prime minister

The prime minister has bemoaned the tax system which is allowing people to
turn £1bn in income into capital to dodge capital gains tax.

Speaking to Jeremy Vine on Radio 2, David Cameron said that tax evasion was a
“problem”.

“We are finding that a lot of people turn income into capital to evade the
tax system, and we are losing about £1 billion because of that,” said Cameron.

Concerns that raising the CGT rate closer to the 50% higher income tax band
would see investors hold onto assets and leave the Treasury further out of
pocket might be avoided. Cameron hinted that that those who had already held
assets for a long period of time would receive concessions to avoid discouraging
them from selling.

“This is not about punishing savers,” Cameron added.

Further reading:

CGT
and VAT red tape will hurt SMEs, tax advisers warn

Businesses
fear CGT confusion, warns BCC

Oxford
professor backs CGT hike

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

2m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

2m 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