Osborne considers cutting CGT
The Times reports that George Osborne is considering cutting CGT as a way of encouraging people to sell their second homes. Treasury officials have been asked to look at cuts to the top rate from 28% to 20%, while the charge for basic rate taxpayers would drop from 18% to 15%. Another alternative could see the merging of CGT with IHT, although the Times suggests Mr Osborne will not want to undermine the promise made in the autumn statement to abolish IHT for couples with less than £1m of assets. Lord Bilimoria, the crossbench peer, stated: "CGT should be lowered to open up greater wealth creation. The current rate of 28% is far too high, considering that the rate used to be 18% during the last Labour government, when entrepreneurs" relief was far more generous." Elsewhere, the Standard notes that over a third of Londoners are in favour of a tax being introduced on properties in the capital that are left empty for a long period of time.
Source: The Times (16/03/2016)