I am not going to tell anyone how to vote but this is interesting information about the effective rates of income tax and capital gains tax.
Remember that capital gains tax is paid when an entrepreneur sells a business.
To have done this, they have had to build something of value, something that has been paying employees who have paid tax and national insurance, corporation tax etc. For anyone to treat capital gains tax and income tax as the same thing is a liability to the economy and has no clue about what drives the economy forward.
If you are an entrepreneur, or care about private enterprise and the future of the economy of this country, this is an important distinction.
Tax and Capital Gains Tax Rates
This is the end of this non-party political broadcast.
To paraphrase my favourite physicist, Professor Brian Cox, ‘Anyone that thinks Capital Gains Tax is the same as Income Tax – is a Twat’.
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Interesting… Wonder where you got the graphic from?
As I understand the red is the Capital Gains Tax Rates, and the Blue the Income Tax. When both coincide, they remain blue… Or so I get it goes.
For those like me who haven’t got much time in the UK, might help to know:
1976-1979 Callaghan (Labour)
1979-1990 Margaret (Conservative)
1990-1997 Major (Conservative)
1997-2007 Blair (Labour)
Conservatives it seems have kept Capital Gains Tax high, while Labour have changed it keeping it down… But, what are they proposing this time around?
The Tony Blair years of ‘Cool Britannia’ is why I came to the UK and stayed here for over 10 years. 1998 – 2008 look good to me.
50% CGT? Many things, but certainly not cool.
Nice infop*&n by the way 🙂
Mark, Nick Clegg stated no changes to Entrepreneur Tax Relief as http://www.hmrc.gov.uk/cgt/disposal.htm
You might like to check your facts.
In general though I totally agree that tax on small business is crazy. Right now I am working out how to spend/re-invest 1st year profits to avoid paying Corporation Tax. Small amounts mean a lot to a small business and I can much better put that money to work than giving to UK plc to inefficiently redistribute.
The Real Person!
Author Mark Littlewood acts as a real person and passed all tests against spambots. Anti-Spam by CleanTalk.
David, can you provide a reference – the link above is to HMRC’s site?
This is the Liberal Democrat Manifesto which is very clear.
“Taxing capital gains at the same rates as income, so that all the money you make is taxed in the same way.”
http://bit.ly/9RoyEv
Please don’t confuse caring about “the future of the economy” with caring about how much you walk away with when you sell your business. If you prefer ow capital gains, that’s fine, but be honest and admin that it is purely out of self-interest.
http://www.huppi.com/kangaroo/L-capgainsspur.htm
The Real Person!
Author Mark Littlewood acts as a real person and passed all tests against spambots. Anti-Spam by CleanTalk.
Doctor Dee. See this related post. I would like to see a lower capital gains tax because I think it is a fairer system here is a simple calculation. https://thebln.com/2010/04/the-absurdity-of-confusing-capital-gains-tax-cgt-with-income-tax/