With President Joe Biden pushing to nearly double the rate of capital gains tax (CGT) for the US’s wealthiest individuals, could the UK soon be looking to follow suit?
The US government has given strong indication that it intends to target the ultra-rich as a means to bolster public finances to combat the colossal economic impact of the pandemic, by proposing a significant targeted increase in CGT.
Biden is looking to raise the top CGT rate for those earning more than $1m annually, from 20 per cent to 39.6 per cent (reaching 43.4 per cent when coupled with an existing surtax on investment income).
To the surprise of many, an increase in UK CGT was a notable omission from the UK Budget in March and something many are predicting will follow. As it has across the pond, the pandemic has widened the wealth gap across Britain and has resulted in growing calls for this to be addressed through taxation.
If you would like to discuss CGT in the context of your own business or wider asset base, our Private Client Tax team can be reached on 01788 539000.
Check out more articles here: www.magma.co.uk/blog.