Cap­i­tal Gains Tax

A brief his­tory

Classic Car Weekly (UK) - - This Week -


Then Labour Chan­cel­lor James Cal­laghan in­tro­duces Cap­i­tal Gains Tax at 30% to stop peo­ple avoid­ing in­come tax. A thresh­old of £9500 was set.


In­come tax for high-rate tax­pay­ers was low­ered from 60% to 40%, and with ba­sic rate pay­ers from 30% to 25%. CGT rates fol­lowed suit, with a thresh­old low­ered to £5000.


CGT thresh­old hits £6500 in the last tax year of the Tory chan­cel­lor­ship of Ken­neth Clarke.


Labour’s Gor­don Brown in­tro­duces a sys­tem where the longer you held the as­set, the lower the rate of tax you paid on it. If you had owned an as­set for 10 years, the rate fell from 40% to 24%.


In Alis­tair Dar­ling’s first bud­get as Labour Chan­cel­lor he scraps the dual rate of CGT and in­tro­duces a new lower, sin­gle rate of 18%.


With no ma­jor changes to CGT in re­cent years, ru­mours are rife that clas­sic cars could fall vic­tim of it.

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