Tag Archives: capital gains tax

£18,000 Education Pot – a good idea?

The papers today have been full of Vince Cable’s proposal that all 16-year olds should have access to an £18,000 endowment for education.

Here is an extract from The Sun:

Teenagers should get £18,000 to spend on further education to re-balance inequality between the generations, Sir Vince Cable has said.

The Lib Dem leader today unveiled his plans for an “endowment fund” which would be used for young people to spend throughout their lives.

And from the Daily Telegraph:

A new wealth tax could extract some of the housing value owned by older Brits, which Cable wants to use to give all 18-year olds

Posted in News | Also tagged , , and | 18 Comments

Opinion: Should Britain copy Obama’s capital gains proposals?

President Obama has announced proposals to increase taxes on the wealthy and help those on lower incomes (such as by boosting tax credits). The plans include reforms to capital gains tax (CGT): increasing its rate and ending a loophole. Should we do the same in the UK, and how do the Lib Dems’ proposals compare?

Posted in News and Op-eds | Also tagged | 14 Comments

Vince Cable MP writes… My view on George Osborne’s employee ownership scheme

Last week at the Conservative Party conference the Chancellor announced a new equity ownership scheme. His proposed scheme, targeted at small companies, is entirely voluntary and cannot be forced upon employees. It would offer employees shares (from £2,000 to £50,000) in their business in exchange for certain employment rights. The shares are Capital Gains Tax free – which if the company grows extremely fast is a valuable offer.

The scheme has had a mixed reaction. However a few

Posted in Op-eds | Also tagged , , and | 76 Comments

Danny Alexander: pay tax as I say not as I do?

Lib Dem chief secretary to the treasury Danny Alexander wrote a powerful article — Rich tax dodgers are as bad as dole cheats — for this week’s Sun newspaper. His condemnation of those, such as Jimmy Carr, who legally avoid paying their taxes couldn’t have been stronger:

… to most people it’s outrageous that a few of the very richest and their expensive financial advisers are devising ever more obscure and underhand ways of not paying their tax. When it comes to paying their fair share, some of the people

Posted in News | Also tagged , , , and | 32 Comments

LDV readers say: Tax Capital Gains and Income at the same level

LDV posed the question last month (even before the Osborne/Alexander austerity emergency budget): Do you believe that as a matter of principle capital gains should generally be taxed at the same level as income?

Here’s what you told us:

    68% (946 votes) – Yes
    27% (371) – No
    6% (80) – Don’t know
    Total Votes: 1397, Poll ran: 10th June – 31st July, 2010

If you missed it at the time, it’s well worth having a read of the comments thread.

Posted in Voice polls | Also tagged | 11 Comments

A taxing mystery from yesterday in Parliament

Liberal Democrat MP Julian Huppert tweeted yesterday:

In chamber listening to Finance Bill debate. Labour trying to reduce (!) capital gains rate from 28% to 25%. No, I don’t understand why!

Posted in Parliament | Also tagged | 8 Comments

Opinion: Liberal Democrats must not compromise on fairer taxes

Today, the Social Liberal Forum has published an open letter to Nick Clegg and Danny Alexander expressing our concerns prior to the emergency budget which will be unveiled next week. By coincidence, Simon Hughes, Malcolm Bruce and Lord Oakeshot are reported in the FT today expressing similar sentiments on capital gains tax.

The SLF letter covers a lot more ground than CGT including socio-economic inequality, income tax and VAT. But it is a fundamental issue which, more than anything else, will determine the future direction of the coalition. For the past month, Tory backbench MPs and the rightwing press …

Posted in Op-eds | Also tagged , and | 53 Comments

NEW POLL: Should capital and income be taxed at the same level?

In amongst the debate over capital gains tax and the politics of whether the Budget leans more towards the previous Liberal Democrat or Conservative policies on the topic is a significant issue of principle.

The Liberal Democrats (and previously the Liberals in particular) have traditionally been much keener on the idea that the tax system should treat ‘unearned income’ more equally to earned income, and so tax more equally the growth in capital value of assets compared with salaries.

Of course the use of the word ‘unearned’ is itself the trigger for a whole range of debates as increase values …

Posted in Voice polls | Also tagged and | 33 Comments

Danny Alexander issues a statement on his Capital Gains Tax affairs

Danny Alexander has made a statement, following an article in the Telegraph on Sunday night, which reported that he had avoided paying Capital Gains Tax on a south London property in 2007:

My wife and I bought our property in Elspeth Road in 1999, we sold it and moved to the current property in June 2007.

Until the spring of 2006 this was the only property we owned. I had rented a place in Aviemore until then, we subsequently bought a place there and moved into it.

I have always listed London as my second home on the basis set out in

Posted in News | Also tagged and | 97 Comments

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