ARTICLE · 24 MARCH 2010

CGT, Continued Flat Rate is Unsustainable

Smith & Williamson

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The continued flat rate of capital gains tax at 18% was a big surprise and must be unsustainable in the longer term, given its disparity with the higher rates of income tax.

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Smith & Williamson

"The continued flat rate of capital gains tax at 18% was a big surprise and must be unsustainable in the longer term, given its disparity with the higher rates of income tax. The CGT rate could once again become linked to income tax rates in the not too distant future so it's a case of use it while you can and anyone thinking of disposing of assets should get a move on. This potentially represents a window of opportunity worth thousands of pounds for some people - but blink and you could miss it."

Realistically,we need a CGT system which recognises long term investment and provides certainty for investors," said Richard Mannion, national tax director at Smith & Williamson, the accountancy and financial services group.

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