Capital Gains Tax  

Govt ignores recommendation to align CGT with income tax

“As a result, after careful consideration of your recommendations, the government has decided not to proceed with any changes at the moment, but will bear your very valuable work in mind if the government considers reform of IHT in the future.”

John Barnett, chairman of CIOT’s technical policy and oversight committee, said while everyone seemed to support tax simplification, the government’s responses showed how difficult this was to achieve.

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Barnett said: “Bluntly, the challenge the OTS faces is that, while ministers buy in to the principle of simplification, whenever it comes up against political or revenue obstacles they trump it. 

“If a significant reform costs the Exchequer money the government reject it. If a significant reform doesn’t cost the Exchequer money it normally produces losers who will make a fuss so it gets rejected then as well.

“The sad fact is that there aren’t many substantial simplifications which are cost-free and controversy-free.”

amy.austin@ft.com

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