No gain from higher CGT

Analysis of Treasury tax receipts by the Financial Times showed that the higher rate of capital gains tax of 28% introduced by George Osborne in 2010 has failed to generate more cash for the government.

In 2012-13 CGT raised £3.8 billion, much the same as the previous year and as compared with £7.7 billion back in 2007-08.

Among the factors that are lowering the tax take are entrepreneur’s relief, with business owners entitled to a lower rate of 10% CGT on sales of qualifying assets of up to £10 million (more than doubled in recent years).