WAY Investment's Mark Benson examines the effect on equity markets of the forthcoming rise in CGT.
First of all the big caveat: We need more detail in particular whether this will effectively mean a return to the old regime with Taper Relief or Indexation or some other accommodation for long term investors. One identified flaw in the flat rate regime was that it does not distinguish between short term speculation and long-term investment. The long-term investor has thus far been protected from the loss of taper by the low level of the flat rate at 18%, but the reciprocal of this is a, supposedly, bargain rate for speculators. In addition, at the moment there is also no indicatio...
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