As part of its Tax Administration and Maintenance (TAM) Day, the government responded to a two-part review of capital gains tax (CGT) published by the Office of Tax Simplification (OTS).
Earlier this year, following a request from Chancellor Rishi Sunak, the OTS made a series of recommendations for simplifying Capital Gains Tax. These included the integration of the different ways of reporting and paying CGT into the Single Customer Account; extending the reporting and payment deadline for the UK property tax return to 60 days; and formalising the administrative arrangements for the ‘real time’ CGT service.
In a letter to the OTS, the Chancellor stated that its recommendations ‘would require a number of wider policy trade-offs’ and therefore require careful thought in regard to their impact on taxpayers.
Mr Sunak also said that the government has accepted five of the OTS’s recommendations on the technical and administrative issues with CGT. These will ‘offer some practical simplifications for taxpayers’, he commented.
The Chancellor’s full response can be read here.
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