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07 June 2010 |
Justin Urquhart Stewart is one of the most recognisable and trusted market commentators in the media. Originally trained as a lawyer, he has observed the retail market industry for 20 years whilst at Barclays Stockbrokers and developed a unique understanding of the market's roles and benefits for the private investor.
Justin Urquhart Stewart is one of the most recognisable and trusted market commentators in the media. Originally trained as a lawyer, he has observed the retail market industry for 20 years whilst at Barclays Stockbrokers and developed a unique understanding of the market's roles and benefits for the private investor. Justin provides financial advice to clients of Kester Cunningham John Financial Planning LLP.
Margaret Mitchell in 'Gone with the Wind' wrote "Death, taxes and childbirth! There's never any convenient time for any of them". Convenient or not, June 22nd 2010 is probably an important date that you will want to schedule into your diary. This is the date when the new coalition government will tell us of its plans to haul a nation, which is currently riddled with debt, into prosperity through taxes and spending cuts. It has already signalled clear intentions to raise capital gains tax for non-business assets to be more in line with income tax. So far, details have been scant on the type of 'non-business assets' that will fall in the net, and of the 'generous exemptions' promised to entrepreneurs.
The result of all this? Stockbrokers up and down the land are now more popular as confused investors make a beeline for them. The fear is that these new changes adversely affect small investors and savers who have saved prudently for their retirement and now find that the goal posts have moved.
There has already been some movement towards capital gains tax products over the last couple of months as many high earners sought to lock a CGT rate of 18%. It is precisely this behaviour that the government is hoping to discourage with the new (expected) tax rate of 40% or even 50%. However, according to the HM Revenue & Customs, 53% of all people who paid CGT in 2008 did on gains of less than |
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