Part III: Capital Gains Tax

1. Are ‘income’ and ‘capital’ logically distinct ideas?

2. How would you distinguish a capital gain from income and why do you need to?

3. Might there be an argument for treating business gains and non-business capital gains differently?

4. What major CGT reform suggestions have the Office of Tax Simplification made and do you agree with them?

5. Have the courts satisfactorily determined what is an “asset” for the purposes of CGT?

6. Have the courts satisfactorily determined what is a “disposal” for the purposes of CGT?

7. Does the “only or main residence” exemption (TCGA 1992, ss.222-226) operate effectively?  Ought it to be abolished?

8. On page 12 of the consultation document on legislating ESC D33, HMRC states: ‘We believe it is therefore inaccurate to say that paragraphs 9 and 10 are a concession when they reflect the position in law as it stands after decided cases’. Do you agree?

9. Is HMRC v Julian Blackwell [2017] EWCA Civ 232 correctly decided?  Does this case suggest that the ‘allowable expenditure’ test in TCGA 1992, section 38 is in need of reform?

10. Do you agree with the abolition of ‘indexation’ and ‘taper relief’ for individuals?

11. In the context of CGT and trusts, should we aim to tax the settlor, the beneficiaries, or the trustees?

12. For the purposes of CGT, what should be the definition of “settlement”?

13. Should different types of trust receive different CGT treatment?

14. Could (and should) there be a specific anti-avoidance provision to deal with what might be perceived as the abuse of trusts in the CGT context?

15. What reliefs for businesses and agricultural property are available under CGT? Are they too generous?

16. What administrative challenges are posed by the CGT and what can be done to minimise them?