CGT hits £9.2b

CGT take hits £9.2bnFigures show that the capital gains tax (CGT) take has hit a record level, with the Government taking £9.2bn in 2018/19. This marks an 18% increase on the year before. The Telegraph’s Harry Brennan says much of the increase has been attributed to a “squeeze” on the buy-to-let sector, with experts saying a change coming into force in 2020 that will force landlords to pay their tax bills within 30 days of selling a property could drive the CGT take up even further. With current rules giving landlords until January 31 to settle due taxes, NFU Mutual’s Sean McCann says: “HMRC clearly sees the opportunity to increase the CGT take by targeting landlords and is introducing new rules to collect the revenue earlier.” Mr Brennan notes that the CGT allowance increased this tax year from £11,700 to £12,000. He also highlights that buy-to-let investors face CGT rates of 18% or 28%, depending on their tax status and their gains, while those selling other assets see rates of either 10% or 18%.