Should we rip up capital gains tax rules? And how to save 40% off a new car

Entrepreneurs and investors pay less tax on their profits to reflect the risk they take. 

 

That’s the principle that lies behind capital gains tax being lower than the rates charged on employment income.

 

But the influential think-tank, the Institute for Public Policy Research, wants to rip up that system and charge the same rate on gains from selling shares or property as income tax – and hack back the annual capital gains tax allowance to just £1,000.

 

It even wants to remove the special low entrepreneur rate given to those who have sold a business that they built up.

 

Is this the kind of For the many not the few move that Britain needs to level the playing field between those with plenty of capital and the ability to make investments and those who don’t?

 

Or is it just another planned tax raid on those putting their money to productive use and growing our collective wealth?

 

On this week’s podcast, Simon Lambert and Georgie Frost dig into the IPPR’s proposals and look at whether this is the kind of thing that could become Labour party policy?

 

They also look at long-term investments that have paid off, risky investments to be wary of and the one thing plenty of people are happy to sink thousands of pounds into 

knowing that they will lose a big chunk of their money – a brand new car.

 

The good news is that due to a perfect storm of a deadline on new regulation and crashing sales, there are some astonishing deals on pre-registered ‘new’ cars with as much as 40% off. The bad news is that you’ll still almost certainly lose money.