Nobody downloaded yet

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

Comments (0) Cite this document
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…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Evaluation of Capital Gains Tax Proposals for 2008/09
Read TextPreview

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

Download file to see previous pages 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 ...
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 from sections of the business community which contend that these changes would not help the business in reality. The concern expressed by small business owners is that to get the full benefit of the reform one would have to an investment for a lifetime and in no way would benefit those who start a small industry, sell it to start another.
Also being debated are the changes made to the existing "Taper relief". This an important area of concern considering the Capital Gains Tax. The taper relief in actuality reduces the body of tax payable on any capital gain on a particular asset business or non-business. Here again the time factor comes into play because it can be used effectively based on the time of existence of the firm.
The other proposals causing stir are the modifications made to the Inheritance law and retirement relief rule. The retirement rule is welcomed by the business persons who wish to retire and sell businesses but not by the persons who do not wish to retire as yet. They haven't been given any concessions or benefits. What may happen is the discouragement of setting up of new small businesses.
The inheritance tax: Inheritance is when a person transfers in whole or parts their assets to an individual or a trust. The tax will become exempt in the scenario when the donor lives for another 7 years after writing of their will and there is the tapering relief in the case the death of the persons occurs between 3-7 years. On the event of death the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Evaluation of Capital Gains Tax Proposals for 2008/09 Essay”, n.d.)
Evaluation of Capital Gains Tax Proposals for 2008/09 Essay. Retrieved from
(Evaluation of Capital Gains Tax Proposals for 2008/09 Essay)
Evaluation of Capital Gains Tax Proposals for 2008/09 Essay.
“Evaluation of Capital Gains Tax Proposals for 2008/09 Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Evaluation of Capital Gains Tax Proposals for 2008/09

Capital Gains Tax Liability

.... She would have to look into the legal ramifications of what would be required, but overall that would be a great asset to her financial situation if she could evaluate what she has and see what she has to do to maintain her current standard of living. Sean should learn from Angelina's savvy and her strong business acumen. Obviously, Angelina planned out how she was going to tackle the issue of how she was going to retire, how she was going to save, and how she was going to divide her assets so that she could make just enough money to make a profit and still have enough left over for capital gains taxes. In addition, she started a small business, which stimulates the...
6 Pages(1500 words)Case Study

The Impact Of Capital Gains Tax On Residential Property Investment Performance And Viability In Australia

...The Impact of Capital Gains Tax on Residential Property Investment Performance and Viability in AUSTRALIA Executive Summary Capital Gains Tax (CGT) in Australia applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home. Rollover provisions apply to some disposals, one of the most significant is transfers to beneficiaries on death, so that the CGT is not a quasi death duty. CGT operates by having net gains treated as taxable income in the tax year an asset is sold or otherwise disposed of....
10 Pages(2500 words)Essay

Project Proposals

...Project 2005 a) As has been the case recently, the s office is normally flooded with many new project proposals, ranging frommaintenance to ones of academic importance. Thus, it can be seen that it is indeed necessary with the present scenario that we, as the university's managers approve the implementation of a project appraisal system, which can automate the project appraisal procedure. The process is describes as follows... ... Therefore, the system must first ensure that each student registers himself and his project proposal. Then the project must be categorized and sent to the requisite faculty. The faculty must then make an assessment of the drawbacks or advantages of the project and must decide upon the...
4 Pages(1000 words)Essay

Capital Gains Tax

...Capital Gains Tax The following are the implications under the provisions of the Capital Gains Tax in respect of the proposed sale of the business by Peter: 1. Plant &Equipment: Being a depreciable asset, there are special rules that apply to this class of asset. A depreciating asset is an asset that has a limited effective life and can reasonably be expected to decline in value over the time it is used. Plant and machinery is a depreciable asset used for business purpose. The capital gain or capital loss resulting from a depreciable asset is subject to the taxation...
4 Pages(1000 words)Research Paper

The calculations for the capital gains tax

...AF3S11 TAX ASSIGNMENT 2007/08 Case of Mr. Darling Letter addressed to Mr. Darling: Dear Mr. Darling Re: Impact of Budget for the year 2008 on your taxable income We have made a review of the information provided by you on the status of your income and capital gains. For your review we have appended your income tax computation for the years 2007-08 and 2008-09. We write to advise you the following with respect to the applicability of the income tax and capital gains. Capital Gains Tax Major changes have been brought in...
10 Pages(2500 words)Case Study

Economical changes during 2008-09 financial crisis

...and such an action requires a lot of time to be effective in practice and will not be able to allow inflow of cash into the market (Khatiwada and McGirr, 2009) are of the opinion that instead of this step, if the government had allowed the use of equity by the troubled firms, the firms would have got enough capital to pull on their business and at the same time the government would be able to bring those firms under their direct control. The compensation structures devised by the government to resolve the crisis would be advantageous under a short-term basis only. In long-term view, it is having much risks involved (Rajan, 2008). The financial markets are still in the danger of collapse. The Federal...
7 Pages(1750 words)Essay

New Concept evaluation with planning & execution proposals

...New Concept Evaluation with Planning and Execution Proposals for a Dehumidifier Submitted by number Submitted professor’s name ] [ university name ] Table of Contents Introduction 5 Phases and Gates 7 Phase 0: Discovery 7 Goals 8 Activities 8 Outputs 8 Gate 0 Review 9 Criteria 9 Gate 0 Keepers 9 Phase 1: Scoping 10 Goals 10 Activities 10 Outputs 13 Gate 1 Review 13 Concerns 13 Gate 1 Keepers 14 Phase 2: Building the Business Case and Plan 14 Goals 15 Activities 15 Outputs 20 Gate 2 Review 22 Concerns 22 Gate 2 Keepers 22 Phase 3: Testing and Validation 23 Goals 23 Activities 23 Output 24 Gate 3 Review 25 Concerns 25 Gate 3 Keepers 25 Phase 4: Product Launch 25 Goals 25 Activities 26 Outputs 26 Phase 5:...
18 Pages(4500 words)Essay

Financial Crisis 2007-09

...The Financial Meltdown What were the substantive causes of the 2007-2009 cataclysmic financial meltdown? The substantive cause ofthe 2007-2009 cataclysmic financial meltdown resulted from the boom in real estate prices. The crisis began with fall of subprime residential market in the U.S. Other causes include global financial imbalances, creation of riskier financial instruments and fall in interest rates. 2. Any other factors exacerbating the financial collapse? The financial collapse was worsened by the financial institutions ability to use the loopholes existing in capital regulation. Banks increased debt while maintaining their capital requirements. This was made possible by moving assets into special...
1 Pages(250 words)Case Study

Governmental Accounting (09/26)

...Governmental Accounting How organizations in the not-for-profit sector differ from organizations in the public sector. The tax and regulatory designation is the first difference between the two entities. The nonprofit making organizations are exempted from federal income and the end year surplus taxes, in addition to being exempted from paying local and regional taxes. This exemption enables nonprofit organizations pursue activities not be suitable for profit making organizations. On the other hand, profit making organizations are required by the federal government to pay all the above stated taxes to the state and ensure that they file their year-end income timely, or...
2 Pages(500 words)Essay

Capital Gains and Losses

...of 1997 (TRA97) (Burman, 1999). For example, long-term gains in the 15 percent tax brackets were taxed at 10 percent whereas the gains in higher tax brackets were taxed at 20 percent. The rates were further reduced in 2003, where capital gains in the 15 percent bracket were taxed at 8 percent. The capital gains in the brackets above 28 percent on assets held for at least five years were also taxed at 18 percent rate. The tax rates on capital gains and dividends were further reduced...
8 Pages(2000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Evaluation of Capital Gains Tax Proposals for 2008/09 for FREE!

Contact Us