Capital gains tax

Bill Dodwell considers the Office of Tax Simplification’s first report on its capital gains tax review

The Office of Tax Simplification published its first report on its capital gains tax review, ‘Simplifying by design’ on 11 November. The report arrived four months after the chancellor’s request 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’. This report looks at policy design and principles and, in particular, at distortions in the system of taxing capital gains.