CGT - "Good news for smaller savers"

The IMA welcomes the Government's proposed reforms to capital gains tax and calls upon the Government to implement them in next year's Budget.

Richard Saunders, IMA Chief Executive, said: " These reforms are good news for smaller savers. The present CGT rules, with different rates according to your marginal income tax rate, and how long you have held assets, are hopelessly confusing for ordinary investors. With a single rate at a modest 18 per cent, and an annual exempt amount of £9,200, people will know where they stand."

"Most savers too will be better off. The great majority of investors in funds will face a lower tax rate on their capital gains, and the minority who do not, will have the option of minimising their liability by judicious use of the annual exempt amount. And of course those who make sure they put the first £7,200 of savings each year into an ISA will face no CGT at all on that money."

"This is a good deal for savers which the Government should implement in the forthcoming Budget."