Skip to main content

Posts

Showing posts from June, 2010

Tory breach of contract on capital gains tax

The Lib Dem-Con coalition agreement states: "We will seek ways of taxing non-business capital gains at rates similar or close to those applied to income, with generous exemptions for entrepreneurial business activities." The Treasury's budget report states: "Effective from 23 June 2010, capital gains tax will rise from 18 to 28 per cent for those with total income and taxable gains above the higher rate threshold... Basic rate taxpayers will continue to pay an 18 per cent rate on their gains. The 10 per cent capital gains tax rate for entrepreneurial business activities will be extended from the first £2 million to the first £5 million of qualifying gains made over a lifetime... The 50p rate of income tax took effect from April 2010 and will remain in place for the time being."
Spot the difference? Of course you do. This means that the Tories have already reneged on the coalition agreement for the sake of their friends the haves, and will do so again if allowe…