ART and antiques could be one of the few winners in a UK government review to tighten up and streamline tax-relief rules.
Proposals set out in a report published by the Office of Tax
Simplification (OTS) last week include doubling the allowance
threshold from £6000 to £12,000 on capital gains from the sale of
art and antiques before Capital Gains Tax or Corporation Tax would
apply.
The OTS report, commissioned as an independent study by the
Treasury - arguably to help Chancellor George Osborne raise
billions in new revenues - largely focuses on areas where tax
relief should be cut.
There is no clear reason why art and antiques have been singled
out for favourable treatment, although such an extension of tax
relief would be seen as a reward for investment which encourages
trade, thereby supporting employment, whereas many of the proposed
cuts apply to areas of subsidy.
If accepted, it would be the first time the allowance threshold
has been raised for art and antiques for 22 years.
By Ivan Macquisten
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