ICAS: Taxpayers denied time to deal with CGT changes

Providing new CGT rule details just weeks before they come into effect could deny taxpayers the right to a reasonable period of time to claim reliefs, according to ICAS.

The Scottish institute claims that previous legal judgments suggest previous transitional periods of 90 days are insufficient, but this is even less time than the government is giving taxpayers on this occasion.

Chancellor Alistair Darling announced on 24 January that he would introduce an entrepreneurs' relief from the full rate of CGT, allowing them to pay CGT at 10% for the first million pounds in gains.

'It would be irresponsible to enact complex changes and not give a sufficient transitional period for taxpayers to consider the implications and arrange their affairs properly,' said ICAS director of taxation Derek Allen.

'At the very least, the chancellor should defer the implementation of this legislation for up to two years. If this is not possible, he should still allow taxpayers who owned assets at 6 October 2007 a period of up to two years to sell those assets and gain the benefit of indexation allowance.'

Further reading:

CGT changes threaten workers share schemes