Call for capital gains tax and inheritance tax to be merged

The Institute of Directors (IoD) is calling for the government to merge capital gains tax and inheritance tax to stop owners of high valued properties being taxed twice on the same asset.

Capital gains tax earns the treasury £5billion a year, while inheritance tax raises £3billion. The IoD describes the current taxation system as 'monstrous' with some revenues of tax being too complicated and expensive to collect. It calls for a simplification of the current tax system to make it easier for businesses to operate, and also to get rid of those income streams which are not "efficient and cheap".

John Redwood of the Conservatives’ Parliamentary Economic Affairs Committee says the rate of capital gains tax is too high, and that the change from 18 per cent to 28 per cent only resulted in more people holding on to their assets. Less revenue has come from capital gains tax since the rate was increased.

The IoD also criticised the demonisation of individuals and businesses that carry out "authentic" tax planning, and says they should not be accused of 'tax avoidance'.

If you require advice from a tax expert in Northern Ireland in respect of capital gains tax, inheritance tax, or any other tax matter, contact Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9288.