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