Capital gains

[shelman]

A number of papers report that Michael Portillo, shadow chancellor, said yesterday he would cut capital gains tax and review stamp duty on share trading, if the Conservatives win the general election. According to The Daily Telegraph, Portillo thinks the City and investors have been let down by Gordon Brown and has drawn up his own financial services manifesto which, he claimed, would "promote enterprise, increase competition and allow people to do with their own money as they see fit". He said he would undertake a study into capital gains tax and could copy America and Ireland, where the various allowances have been abolished and the tax cut from 40% to a flat 20%

In the present market this should win the tories at least another two or three votes.

 

[Uncle]

Then he's got my vote for one of the two Steve !!!!

John

 

[Joe]

Guess where his second vote comes from?

Regards
Joe

 

[shelman]

I thought i'd be the only one
Steve

 

[Uncle]

Too late Steve, they have already gone........guess your stuck with Gordon..........and from the look of things, arent we all.

 

[darth trader]

interestingly, if there is no tax that can be no CGT relief either...

 

[Joe]

You're right Darth, but I would hope that capital gains would be treated in the same manner as Building Society deposits etc. It's difficult in my book to treat interest in one way because the bank invests in shares and pays a return, as opposed to gaining a return by directly investing in shares oneself.

As for Stamp duty, that's an archaic remnant of former times and practises.

If it doesn't happen, more people will be attracted away from the London market and also there will be greater growth in spread betting and contracts for differences.

Look what happened when the revenue from betting tax was threatened by off-shore operations.

I'm content to pay income tax, doesn't mean I like it, but at least it is by and large means tested and fair.

Don't think they'll change it unless they are forced to, either party, it's easy money, and doesn't gain many votes.

Without Stamp Duty my loss this year would be a profit!

Regards
Joe

 

[Uncle]

...........and of course now we can have fixed price dealing costs regardless of size of trade, the stamp duty is the greater of the two.

John

 

[darth trader]

Just to confirm,

I meant being able to claim back losses against cgt.