Capital gains

Capital gains

FORTHCOMING CHANGE: BADR and investors’ relief: At Autumn Budget 2024 on 30 October 2024, in addition to increasing the main rates of CGT and reducing the CGT lifetime limit for investors’ relief for disposals on or after 30 October 2024, the government announced increases in the respective rates for business asset disposal relief (BADR) (formerly known as entrepreneurs’ relief) and investors' relief from 10%–14% with effect from 6 April 2025, and from 14%–18% from 6 April 2026, thereby realigning these rates with the lowest main rate of CGT by 6 April 2026. The changes, which are subject to transitional and anti-forestalling provisions, are introduced by Finance Bill 2025. For further information, see Autumn Budget 2024—Tax analysis, Finance Bill 2025 clauses 7–11 and Schedules 1–2 (as introduced), Autumn Budget 2024 (paras 2.48, 2.49, 5.65 and 5.66), OOTLAR (paras 1.9 and 1.10), Policy paper: Changes to the rates of Capital Gains Tax and Policy paper: Capital Gains Tax: Investors’ relief—lifetime limit reduction.

FORTHCOMING CHANGE: Abolition of non-dom regime: At Autumn Budget 2024, the Labour government confirmed that it will proceed with plans of the former Conservative

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Latest Tax News

Tax weekly highlights—21 November 2024

This week's edition of Tax weekly highlights includes: (1) the Supreme Court decision in Refinitiv concerning the interaction between the diverted profits tax and an advance pricing agreement, and (2) the Supreme Court decision in Cobalt Data Centre on the scope of the enterprise zone allowance.

UT finds FTT made errors when setting aside HMRC best judgment assessment (HMRC v Sintra Global)

Tax analysis: In Sintra Global, the Upper Tribunal (UT) set aside the decision of the First-tier Tax Tribunal (FTT) insofar as it related to a notice HMRC had issued to an individual making him liable for the payment of a civil evasion penalty charged against a company he was a director of. The UT found that the FTT had failed to follow the guidance provided by the Court of Appeal in Pegasus Birds in relation to the assessment the penalty was based on.

Supreme Court rules on the scope and limitations of the enterprise zone tax incentive (R (oao Cobalt Data Centre) v HMRC)

The Supreme Court unanimously dismissed the taxpayers’ argument that the relevant expenditure fell within section 298(1) of the Capital Allowances Act 2001 (CAA 2001) and concluded that, based on the proper interpretation of that provision, the expenditure was not incurred under a contract executed prior to the conclusion of the initial ten-year period, as required. Adam Craggs, partner at RPC, discusses the implications that the judgment has on taxpayers going forward.

Consultation on expanding tax conditionality to new sectors

Environment analysis: On 30 October 2024, HM Revenue and Customs (HMRC) issued a consultation on ‘Tackling the hidden economy: expanding tax conditionality to new sectors’. The consultation runs to 21 January 2025. Angus Evers, partner at Shoosmiths, comments on the consultation.