Hello all,
On the assumption the Chancellor will raise CGT (which is a separate debate!) my question is whether this is most likely to occur at midnight on budget day, at the start of the next tax year (possibly with anti-avoidance) or retrospectively for all of the tax year 2020/21.
I appreciate there are no crystal balls but does anyone have a strong view of whether retrospective is likely? We are certainly in exceptional times so I'm not sure the past is a good guide to the future but any thoughts would be appreciated.
My own research finds:
2008 Pre-budget statement - Darling announces withdrawal of taper relief and indexation releif and introduction of single 18% tax rate for CGT. Effective 6 April 2018
2009 Budget - Darling confirmed that from April 2010 a new 50% higher rate of income tax would apply on incomes over £150,000
22 June 2010 - Osborne introduces new 28% CGT rate applicable from midnight for higher rate taxpayers (also captures any deferred gains yet to be revived) - main precedent
16 March 2016 - Osborne cut CGT from 28% to 20% for higher rate payers with effect from 6 April 2016 (3 weeks later)
29 October 2018 - Hammond extends qualifying period for entrepreneurs relief, effective after 6 April 2019 (except where a business ceased before 29 October 2018)
11 March 2020 - Sunak cuts entrepreneur's lifetime limit from £10mil to £1mil, applied from budget day (with some special provisions for disposals entered into but not yet complete but including forestalling arrangements)
My own opinion is that if it happens it will quite likely be at midnight. A retrospective change impacts decisions being taken right now would seem exceptionally harsh, especially in light of historical precedents.
Thanks,
Dom
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