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CLA says Capital Gains Tax hike will hit landowners who invest long-term The CLA said today (Tuesday, 22 June) that landowners who invest for the long-term will be "disappointed" their gains will be taxed at the same rate as short-term speculative gains - without even any allowance for the effects of inflation. CLA President William Worsley said: "Landowners will in any case be badly affected by the increase in the tax rate from 18 percent to 28 percent.
"The disposal of non-liquid assets such as land which cannot be disposed of in small parcels naturally results in large gains being realised, albeit at infrequent intervals.
"The addition of the capital gain to taxable income, under the new rules, will take the gain into the 28 percent tax rate even where the landowner's income is subject only to the basic rate of tax."
However, The CLA welcomed the Chancellor's confirmation that the special tax rules for Furnished Holiday Lettings will remain in force for the rest of the current tax year.
These rules have enabled farmers to diversify into providing tourist accommodation on farms, benefitting other local businesses such as pubs, restaurants and leisure attractions, as well as farmers.
The CLA looks forward to taking part in the Government consultation on proposed changes to the rules for increasing the number of days for which qualifying properties have to be available for letting and are actually let.
The Association will also discuss the way in which reliefs for losses are given to make sure farmers are not discouraged from providing and improving holiday accommodation on farms. |
Contact Adrian Baird
Media Contacts Ollie Wilson T: 020 7460 7936
T: 020 7460 7934
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More articles and documents [News Archive] [15 July 2008] GN09-11 Capital Gains Tax: average land values in 1982 [Guidance notes] [10 June 2011] CLA58 - Succession planning for farmers and landowners [Advisory handbooks] [9 November 2010] Tax treatment of pre-owned assets [Consultation response archive] [27 February 2004] |
Formerly an Inland Revenue Tax Inspector in Leicestershire. He was promoted to the Inland Revenue Policy Division at Somerset House, London, and was an Inspector Principal when he joined the CLA.
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