Will the Government tinker with capital gains tax to help pay the coronavirus bill?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 17 July 2020

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Chancellor has ordered an urgent capital gains tax review which could hit many homeowners and investors, depending on the outcome.

With Rishi Sunak and the Government looking at ways to foot the coronavirus bill, will CGT be changed and will they keep their manifesto pledge to not raise income tax, national insurance or VAT?

On this week's podcast, Simon Lambert, Lee Boyce, and Georgie Frost look at what could happen to CGT and why.

We discuss the problem facing 'cladding prisoners' – people who are trapped in flats wrapped in dangerous materials that are unable to sell, or take advantage of the stamp duty cut, with banks nervy to lend to would-be buyers.

A reader contacts us about an unusual letter from their bank seemingly randomly asking if they are a tax resident of Egypt, with no connection to the country whatsoever.

Are you an aspirational recycler? We talk you through our guide on how to recycle, properly.

Travel is still on our lips, with Georgie booking a trip to Spain: What do you need to consider if you're tempted to do the same?

And finally, we look at the cheapest cars to insure, with a surprising choice at number one: a sporty, two-seater convertible.

Transcript

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0:00.0	Welcome to This Is Money. I'm Georgie Frost and alongside editor Simon Lambert and me today is assistant editor Lee Boyce.
0:06.7	And, well, we asked the question on last week's pod, how on earth is the chance they're going to pay for all this?
0:12.6	Did we just get some of the answer this week? What indeed does a capital gains tax review really mean?
0:19.7	Is it just a tax on homes and investors just after
0:22.6	we got a cut to stamp duty? Talking of which the team has spoken to the cladding prisoners,
0:27.8	those homeowners for whom the cut won't make a difference. On the tax theme, why did Lloyd's
0:33.1	bank think, one, this is money reader, is a tax resident of Egypt when he's from Romley. Is it a scam or just one big cock up? Also, as day, we look at how you can use your money for good and what do all those recycling symbols mean? That might be a little bit tricky for a podcast, but if anyone can do it, we can. We also answer your questions about booking a trip abroad if you're brave enough or
0:54.9	daft enough as I appear to be, as I'm going away next week, fingers crossed. And we reveal the 10
1:00.5	cheapest cars to insured and don't be getting step to date. With all the latest breaking
1:04.2	money news, just go to this ismoney.co.uk or download the app. But first, last week, we
1:10.7	mold over how the Chancellor was going to pay
1:13.2	for the huge pandemic bill. We speculated on which group or groups might be hit the hardest. Would
1:20.5	it be the self-employed pensioners or rich folk? Well, this week the speculation is it could
1:26.6	be homeowners and investors. Though,
1:29.3	in all honesty, it's probably likely to be all of us in somewhere or another. But why these two
1:33.9	particularly? It is because the Chancellor has ordered an urgent capital gains tax review. But firstly,
1:41.3	Simon, welcome. A bit of an economics 101. What is capital gains tax?
1:45.8	Capital gains tax is a tax that you pay when you make a profit on an asset that you sell.
1:52.9	There are some assets that are exempt, but the main ones that we're talking about here are
1:58.3	shares, fund investments, property, if it's not your own home,
2:04.4	so second homes, buy to let's, and a business. If you build a business over the years and then
2:10.8	you sell up, you'll pay capital gains tax on your profits. Among the things that are exempt
	...

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