Brewin Dolphin slams proposed CGT rise

by Richard Kilner

Investment manager Brewin Dolphin has raised serious concerns over the Coalition Government’s proposals to raise Capital Gains Tax (CGT) in the June Emergency Budget.

Brewin Dolphin has expressed the view that by raising CGT the Government will erode the grounds upon which investors risk their capital supporting businesses, and warned that it will seriously discourage investment as the move will dramatically alter the risk/reward ratio.

The firm urges those who will be affected to seek advice sooner rather than later, as the proposed change is likely to come into effect in April 2011.

Brewin Dolphin suggest rebalancing assets between husbands and wives to take advantage of the £10,100 CGT allowance, contemplate offshore bonds and ‘re-basing’ portfolios now to gain a higher book cost, even though it may involve the paying the present 18% tax rate.

The firm has also stated it is possible that more will be paid at 18% in CGT this year than next year, at a higher rate, because the tax is voluntary, and will simply be avoided when the rate increases.

Brewin Dolphin has urged the Government to stop its proposed increase of CGT, and described the forthcoming change to tax policy as alarming.

Source: http://www.bankingtimes.co.uk/