Chancellor calls for CGT review
The Chancellor has written to the OTS to ask for a review of capital gains tax and aspects of the taxation of chargeable gains, in relation to individuals and smaller businesses.
As well as looking at opportunities to simplify administration and the impact of technical issues, the Chancellor has asked for the review to explore areas where the present rules can distort behaviour or do not meet their policy intent, to help ensure the system is fit for purpose.
"This review should identify opportunities relating to administrative and technical issues as well as areas where the present rules can distort behaviour or do not meet their policy intent," Chancellor Rishi Sunak wrote.
"In particular, I would be interested in any proposals from the OTS on the regime of allowances, exemptions, reliefs and the treatment of losses within CGT, and the interactions of how gains are taxed compared to other types of income."
In response, the OTS has published an online survey and a call for evidence to seek views about capital gains tax.
The OTS explained it wants to hear directly from individuals and businesses as well as professional advisers and representative bodies about which aspects of capital gains tax are particularly complex and hard to get right, and to hear any suggestions for improvements.
The survey is open now and will be available until the end of the summer.
It can be accessed here.