Capital gains tax: will deferred proceeds change after the OTS’s recent report?
In July last year, the Chancellor asked the Office of Tax Simplification (OT) to review capital gains tax (CGT). The aim was to “identify opportunities relating to administrative and technical issues as well as areas where the present rules can distort behaviour or do not meet their policy intent”. Following its review, the OTS published its first report in November 2020. Named “Simplifying by design”, it considered the policy design and principles underpinning CGT. In May this year, the OTS published its second report, “Simplifying practical, technical and administrative issues”. We’re focusing on this report throughout this article, in particular, its section on deferred proceeds.