Budget day has been confirmed as December 6th 2011.
It is firmly believed that the rate of both Capital Gains Tax (“CGT”) and Capital Acquisitions Tax (“CAT”) will be increased in Budget 2012, perhaps to as much as 35% from the existing rate of 25%. Many commentators believe that ultimately these taxes may even reach 40% in due course.
It is also strongly speculated that the CAT thresholds may also be reduced which essentially lowers the level of gifts or bequests that a person can receive on a tax free basis.
Anyone contemplating or in the process of selling or transferring assets which may be effected by CGT or CAT should give consideration to accelerating the process to completion before December 6th to avail of the current rates of tax, before the increases apply.