Pensions - Articles - AXA Wealth comments on Liberal Democrat idea to increase CGT

 Mike Morrison, head of pensions, AXA Wealth, said: “While the Chancellor has logically started to ask questions about how much revenue the 50p tax rate raises compared to the cost of collection, we also need to question whether Vince Cable’s talked about solution of raising capital gains tax on high value properties will deliver the necessary funds.

  

 “This decision may be a political one, particularly as the Liberal Democrats have long been supporters of a ‘mansion tax’ policy.  I therefore find it difficult to view this as anything but a knee-jerk reaction to a future cut in the 50p income tax rate. While there is of course a need to stabilise the UK’s fiscal debt, every idea should be thoroughly evaluated to ensure that we don’t end up with another tax which is short-lived and fails to deliver on its intentions.

  

 “With the economy and the property market in such a fragile state, we need to be wary of anything that may de-stabilise the situation any further. While most people understand that everyone needs to play their part in improving the UK’s finances, further taxes on the high-end market could have a detrimental effect across the board.”