This Wednesday’s Budget will not only outline how the Government intends to continue its support of the economy during the current pandemic situation, it is expected to also provide an indicator as to how the Chancellor aims to eventually repay the unprecedented borrowing that has been required over the past twelve months. One area that Rishi Sunak is rumoured to looking at is a restructuring of the Capital Gains Tax (CGT) rules.
The Office of Tax Simplification’s report in Autumn 2020 suggested that CGT rates should be more closely linked with income tax rates, and although many experts find that unlikely, there is a growing belief that the Chancellor may look to CGT rises as one method of raising extra revenue for the treasury.
Those couples going through the process of separation and divorce may find themselves particularly exposed by any change to the current CGT rules and those finding themselves in the situation of dividing shared assets following a split would be wise to carefully consider their options to avoid an unexpected CGT bill if Sunak decides to take such action and we are able to signpost those wishing to get a full briefing.
Here at The Financial Planning Group we help individuals and families to place their financial affairs in context with future goals and aspirations. We will change the fundamental relationship people have with their money to give them confidence and clarity in their futures.
If you would like to find out more about how The Financial Planning Group can provide you or a family member with bespoke, independent and Chartered Standard Financial Planning advice, please call Tim Norris on 020 8614 4780 or e-mail Tim.Norris@fpgonline.co.uk