I was looking at some HM Revenue and Customs figures recently and they quite surprised me. They were forecasting that the annual receipts for capital gains tax for 2006-2007 would be over £4bn. This compared to £3.5bn for inheritance tax.
We often talk about the inheritance tax benefits of offshore bonds (in trust) but do not focus as much on the capital gains tax benefits. I suppose one reason it is not aired often is the general wisdom that not many people use their annual capital gains tax allowance. Figures from the HMRC are interesting on this point too. In 1994-1995 there were 73,000 taxpayers (either individuals or trusts), netting the Revenue £745m. Ten years later, the estimated figure for 2004-2005 is revenue of £3bn from 186,000 taxpayers. This is a four-fold increase in revenue and more than a doubling of the nu...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes