The new Capital Gains Tax rules are still in the balance it would appear.
The politicians seem to fear the mass sell off that is being planned in shares and property. Whilst selling shares is relatively easy if everyone empties their applecart in the space of three weeks then prices will be pretty depressed. So not so great if you are already invested but handy for those who have been sitting on cash.
Property is not so easy, how can you sell your property portfolio in three weeks. Well if its commercial property and you have a sufficient sized fund then you could sell it to your pension fund. Failing that you may struggle as the market becomes flooded temporarily.
What this does prove is that people must use their ISA allowances to protect themselves wher they can, and for many investmnets where they receive rollover relief will become increasingly popular despite their probable higher risk. If you are guaranteed to pay 40% or maybe 50% tax instead of 18% then the risk of the investment falling but deferring any tax and you really making a loss changes.
The coalition face their first real challenge. A brave face will be shown but I imagine their will be much jousting behind the scenes. I wonder how many MP second homes are up for sale???
