Scramble for gold to beat tax increase (GC in FT)‎

31 May 2010  The Financial Times

British investors are scrambling to buy sovereigns and Britannia gold coins in an attempt to use a tax loophole to avoid paying more capital gains tax.

Mark O’Byrne, of Gold Core, a London-based gold coins and small bars dealer, said it was selling sovereigns and Britannias “in the thousands”.

“This week we sold more than in any other one-week period,” he said. “The vast majority of the buying is related to CGT.”

The move comes as the government plans to raise CGT for items such as second homes and shares to rates “similar or close to those applied to income”, suggesting a rise from the current 18 per cent rate to nearer 40 or 50 per cent. The tax increase is likely to come into force next April but could be introduced on June 22 alongside the government’s planned emergency Budget.

http://www.ft.com/cms/s/0/74825c32-6a93-11df-b282-00144feab49a.html?ftcamp=rss