OTS review of CGT and Treasury Committee investigation into tax reform following the Coronavirus pandemic

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OTS review of CGT and Treasury Committee investigation into tax reform following the Coronavirus pandemic

OTS review of CGT and Treasury Committee investigation into tax reform following the Coronavirus pandemic

Fri 24 Jul 2020

The Chancellor, Rishi Sunak, has written to the OTS, to ask the Office of Tax Simplification (OTS) to undertake a review of Capital Gains Tax (CGT) and aspects of the taxation of chargeable gains, in relation to individuals and smaller businesses. The Parliamentary Treasury Committee has also announced an investigation into tax reform after the Coronavirus pandemic. 

As well as looking at opportunities to simplify administration and the impact of technical issues, the OTS review will explore areas where the present rules can distort behaviour or do not meet their policy intent, to help ensure the system is fit for purpose. The review is to be focused on individuals and smaller businesses, with group corporate capital gains left out of scope.  While the review is not focused on CGT rates, there is a requirement to consider the impact of any proposals for change on the tax gap. 

The Treasury Committee will look at what the major long-term pressures on the UK tax system are, what more the UK can do to protect its tax base from globalisation and technological change, and whether such pressures should be met with tax reform.

The Committee will also seek evidence on what overall level of taxation the economy can bear, the role of tax reliefs in rebuilding the economy, and whether there is a role for windfall taxes in the post-Coronavirus world.

It is always of interest to see the direction of Government’s is thinking on tax policy.  Please get in contact with a member of the Mazars personal or corporate tax team for a further discussion of the current CGT landscape and the areas of tax policy change the Government may be considering for the future.

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