I recently realised that Rishi Sunak, chancellor of the Exchequer, is urged to pass new changes related to CGT in the next budget day on 2-3 March 2021.
Right now, CGT status is as follows: £12300 in profits tax free per financial yer, then any profits above that threshold taxed at 10% for lower income earners or 20% for higher income earners.
It is rumoured that Sunak might propose to raise the 20% up to 40-45%, and LISTEN TO THIS, potentially reduce the CGT threshold from £12300 down to even £2000.
If this happens, I am literally toasted. This year I am already maxed out my $12300 threshold, and I still have a huge bunch of shares waiting to sell them after 5 April and put them in the ISA (yes I am stupid and I opened the ISA after I did those purchases, didnt predict those shares will rise so much…). Plus I own a fair amount of crypto which obviously sits outside the ISA.
What’s your thoughts on these potential changes?
I have a fear that ‘scrapping ISA benefits’ might be on the table too. Do you think those clowns might come and say ‘Ohh, the CGT free ISA benefit will be scrapped, and now any investmenets within the ISA will be subject to CGT’ ??? I am terrified with these clowns.
Any thoughts very much appreciated…