This article is an extract from our monthly newsletters. Sign up to receive our full newsletters.
Chancellor Rishi Sunak has asked the Office of Tax Simplification (OTS) to carry out a thorough review of capital gains tax (CGT).
In a letter to the OTS, the Chancellor requested that the independent office review CGT and aspects of the taxation of chargeable gains in regard to individuals and small businesses. Mr Sunak requested that the review identifies and offers advice on the opportunities to simplify the taxation of chargeable gains to 'ensure the system is fit for purpose'.
In the letter, the Chancellor said that he would be interested in proposals from the OTS on the regime of allowances, exemptions, reliefs and the treatment of losses within CGT, in addition to the interaction of how gains are taxed compared to other types of income.
The OTS recently published a call for evidence in the form of an online survey, which seeks to gather views on CGT. The OTS wants to hear from businesses, individuals, professional advisers and representative bodies on which aspects of CGT are complex and difficult to get right, as well as suggestions in regard to how the tax can be improved.
The call for evidence comes in two sections: the first seeks high-level comments on the principles of CGT by 10 August 2020, while the second and primary section of the document invites more detailed comments on the technical detail and practical operation of CGT by 12 October 2020.
More information on the survey can be found here.