Evaluation of Capital Gains Tax Proposals for 2008/09 - Essay Example

Only on StudentShare

Extract of sample
Evaluation of Capital Gains Tax Proposals for 2008/09

There is both furore and appreciation for the reforms from cross sections of the society. This essay tries to explore the pros and cons from various perspectives.
The budget elucidated the projection for 2007/8 at 4.6 billion. On the capital Gains front a new tenet was recommended in the name of 'entrepreneurs' relief.' By this way the entrepreneur is given the leeway of paying the capital gains tax at the rate of 10% on capital gains up to the first 1m, instead of the originally proposed 18%
The projection for 2007/08 is 4.6 billion. The budget introduces a new tenet in the capital gains tax called the 'entrepreneurs' relief.' Wherein the entrepreneurs need to pay just 10% on capital gains up to the first 1m, instead of the originally proposed 18% . This calculus of taxing the entrepreneurs makes the entire exercise a bit complicated.
Let us first understand the capital gains taxation announced in this budget. Different slabs have been fixed for different levels of business per se. There would be a tax rate of 18% on the sale of assets above 1m whereas 10% on sales of assets up to 1m. This implies that about 80,000 people are expected to qualify for the 10% rate. Additionally, the gains made on different occasions would also qualify for the 10% rate up to a "cumulative lifetime total of 1m of gains."
The Chancellor faces flak on the Capital Gains front ...Show more

Summary

Taxation can be described as the amount of money a firm or an individual pays to the government to ensure the proper functioning of the nation. The tax is levied on the income a person receives, profits an industry makes etc. Taxes are also imposed on services rendered, the the income acquired from the sale of an investment…
Author : cristopher34
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Evaluation of Capital Gains Tax Proposals for 2008/09"
with a personal 20% discount.
Grab the best paper

Related Essays

Capital
Companies are highly geared when the fixed charges are substantially higher than the competition. Gearing is speculative and expected to provide benefits for shareholders when the firms are performing well. The concept of gearing has always been linked with uncertainties.
14 pages (3500 words) Essay
Capital Gains Tax Liability
First of all, you own 50% of your property. This is equity. With equity you can do many things, such as make purchases against your equity. The fact that you have a house on the beach in Marmion also helps you in the sense that you completely own (jointly, I might add) a residence.
6 pages (1500 words) Case Study
Capital Asset Management and techniques of its evaluation
The use of such techniques provides their own characteristics, conditions and not forgetting, limitations. The use of Net Present Value is more superior as compared with the use of say, Payback Period. The Payback Period calculation looks at the shortest number of years to recover the cost of the project.
4 pages (1000 words) Essay
Capital Gains Tax
The capital gain or capital loss resulting from a depreciable asset is subject to the taxation only to the extent the depreciable asset is used for a non-taxable purpose. For example if a depreciable asset is used for a private purpose then it can be said to have been used for a non-tax purpose to the extent that it is used for private purpose, In the instant case the plant and machinery was used for the purpose of business and there is a capital loss of $ 10,000 resulting from the transaction.
4 pages (1000 words) Research Paper
The calculations for the capital gains tax
Major changes have been brought in the budget for the year 2008 in respect of the capital gains tax. The indexation allowance and taper relief which have so far been allowed are withdrawn and in that place a flat rate of 18 percent of the chargeable gains has been introduced.
10 pages (2500 words) Case Study
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT