Crystallising Capital Gains: General Election 2019 and tax

Opinion polls and betting odds on the 12 December General Election currently suggest that a Conservative led government is more likely than a Labour one.  But polls have been wrong before, and clients who are currently holding assets pregnant with gain may be nervous of Labour’s manifesto commitment to tax capital gains at income tax rates (so up to 50%) in place of the current Capital Gains Tax rates (which may be anything from 10% to 28% depending on the nature of the asset and other factors).

Further, in the light of the comments of the Institute for Fiscal Studies casting doubt on the affordability of even the Conservatives’ proposals, there may be pressure to do away with the Entrepreneurs’ Relief 10% rate even with a Conservative government, though perhaps with less urgency.

Some clients may therefore want to think about forestalling changes by entering into appropriate transactions before the election so as to crystallise charges to tax at today’s rates.  We at BKL have some simple ideas and some more sophisticated ones. What is appropriate and practical will depend on the assets concerned, the timeframe, and other factors; but if you would like to explore what might be possible, please speak to your usual contact at BKL or use our enquiry form.

NICOLA HALL

BILSHAN MENSAH

Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.

ELANA DIMMER

Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.

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