THE UK’s capital gains tax bill grew 43% to £5.5bn last year, according to figures from UHY Hacker Young.
The top 20 firm identified an increase to the levy’s rate and removal of reliefs as the key factors behind the yield’s rise from £3.4bn the year before. An increase in the turnover of shares and buy-to-let properties also played a part.
Those in London and the Home Counties footed a significant portion of the bill, paying £2.3bn last year, around 47% of the total.
“Many of these transactions such as the sale of a property or the sale of business assets are one-off opportunities for individuals to turn their investment into cash for their retirement – so CGT can be really problematic,” said UHY Hacker Young partner Matthew Hodgson.
“Coupled with the recently announced increase in dividend taxation, any further rise in CGT rates could seriously undermine entrepreneurs and small businesses, which are the bedrock of our economy.”
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The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
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