ICAS ICAS logo

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. Careers

    Access current vacancies and understand what it’s like to work here at ICAS.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Find a CA
  • Careers
  • Contact us
  • Become a CA
  • CA jobs
  • SCABA
  • ICAS Foundation
  1. Members
    1. Become a member
    2. Manage my membership
    3. Benefits of membership
    4. Professional development
    5. Mentoring
    6. Member rewards
    7. CA jobs
    8. Area networks
    9. International communities
    10. Get involved
    11. CA Connect
    12. CA magazine
    13. Top Young CAs
    14. Career breaks
    15. The ICAS member app
    16. Newly admitted members 2020
    17. CA Wellbeing
  2. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. CA Stories
    4. Find a training agreement
    5. Why become a CA
    6. Qualification information
  3. CA Students
    1. Studying with ICAS
    2. Timetables and exams
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
  4. Employers
    1. Become an Authorised Training Office (ATO)
    2. Resources for Authorised Training Offices (ATO)
    3. Professional entry
    4. Apprenticeships
  5. Thought leadership
    1. Technology
    2. Trust
    3. Talent
    4. Research
    5. CA Agenda podcast
    6. CA Agenda videos
    7. ICAS webinars
  6. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Charities
    5. Coronavirus
    6. Corporate and financial reporting
    7. Business and governance
    8. Ethics
    9. Insolvency
    10. Pensions
    11. Practice
    12. Public sector
    13. Sustainability
    14. Tax
  7. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
  8. Governance
    1. At a glance
    2. Charter, rules and regulations
    3. Council
    4. Boards and key committees
    5. Public reporting
    6. Executive team
    7. Diversity
    8. Member research
  9. Contact us
    1. ICAS technical helpdesk
    2. ICAS logo request
  10. Careers
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS

CGT review – have your say

  • LinkedIn (opens new window)
  • Twitter (opens new window)
Susan Cattell By Susan Cattell, Head of Tax Technical Policy

23 July 2020

Main points

  • The Office of Tax Simplification is carrying out a review of Capital Gains Tax.
  • Does the scope of CGT need to be changed, or does it remain appropriate?
  • Are there challenges for individuals and small businesses?

ICAS will be responding to the Office of Tax Simplification’s review of Capital Gains Tax - send us your views on the questions posed by the OTS.

Why is the OTS carrying out a review of CGT?

The Chancellor, Rishi Sunak, asked the OTS to undertake a review of Capital Gains Tax and aspects of the taxation of chargeable gains in relation to individuals and smaller businesses. The Chancellor requested that the OTS identify and offer advice about opportunities to simplify the taxation of chargeable gains, to ensure the system is fit for purpose and makes the experience of those who interact with it as smooth as possible.

The review will consider administrative and technical issues affecting individuals, partnerships, and unincorporated or single entity owner-managed companies. It will also look at areas where the present rules can distort behaviour or do not meet their policy intent.

The OTS has divided its work into two stages, set out in its call for evidence and summarised below.

Principles of CGT – first stage of the review

The OTS is initially interested in receiving high level comments on the principles of CGT by 10 August 2020. These comments will help to shape the balance of the work.

The OTS notes that the 2011 Mirrlees review raised some fundamental questions about the nature of CGT. It questioned whether the government should continue with different rates of tax for different types of income, including income derived through capital gains (after allowing for a given rate of return). It also considered whether there should be different treatment for capital gains realised in life and for those gains realised on death.

Against this background the OTS would like views on whether the scope and reach of CGT, in the context of the wider tax system, continue to be appropriate. Respondents are encouraged to ‘think broadly’ but particularly to consider some themes identified by the Chancellor, including:

  • Allowances, including the annual exempt amount, its level and the extent to which it distorts decision making;
  • Exemptions and reliefs, including how they fit together and the extent to which they incentivise some decisions over others;
  • The treatment of losses within CGT, including the extent to which they can be used and whether the loss regime distorts decisions about when to buy or sell assets; and
  • The interaction between taxation of gains and taxation of other types of income, including the boundary between the two. Should there be different regimes for short‐term gains, compared to long‐term gains?

Main call for evidence – second stage of the review

In the second stage of the review the OTS invites more detailed comments on the technical detail and practical operation of CGT – to be submitted by 12 October 2020. The aim is to explore simplification opportunities across the following areas:

  • the overall scope of the tax and the various rates which can apply
  • the reliefs, exemptions and allowances which can apply, and the treatment of losses
  • the annual exempt amount and its interactions with other reliefs
  • the position of individuals, partnerships and estates in administration
  • the position of unincorporated businesses (including setting up, selling and winding up)
  • the position of stand‐alone owner‐managed trading or investment companies
  • any distortions to taxpayers’ personal or business investment decisions
  • interactions with other parts of the tax system such as Income Tax, Capital Allowances, Stamp Duty Land Tax and Inheritance Tax

Suggestions could include ideas on how to rationalise processes, improve guidance, harmonise definitions or make the framework or workings of the tax easier or more intuitive to understand. Ideally the OTS would like to see practical real-life examples to illustrate any broader points.

The OTS has also set out detailed questions respondents may want to address, on a range of issues including:

  • Annual exempt amount
  • CGT rates
  • Principal private residence relief
  • Chattels exemption
  • Reliefs available to business owners/shareholders
  • Administration – payments, reporting, claims, valuations and record-keeping
  • Interaction with other taxes.

What is excluded?

The focus of the review is on smaller businesses and individuals. The OTS comments that it will not be considering issues specific to corporate groups, such as substantial shareholding exemption, company reorganisations or demergers. The review will also not be considering trusts or residence and domicile issues.

Have your say

ICAS will be responding to the review and hopes to meet with the OTS - send us your thoughts on the principles of CGT or on any of the questions posed by the OTS by emailing tax@icas.com.

Making effective tax policy

By Susan Cattell, Head of Tax Technical Policy

14 July 2020

Devolving powers across the UK

By Charlotte Barbour CA CTA (Fellow), Director of Taxation, ICAS

21 July 2020

2021-01-markel 2021-01-markel
ICAS logo

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice

Connect with ICAS

  • Facebook (opens new window) Facebook Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba
ICAS logo

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: