capital levy

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capital levy,

form of taxation by which the government takes part of the capital of any person or business, as distinguished from a tax on personal or business income. It is usually applied to all capital above a certain minimum and may be set aside for a specific purpose, such as the reduction of the public debt. It was used by several European nations experiencing financial difficulties after World War I, and has been advocated as a measure of social welfare and a deterrent to war profits. Opponents of the capital levy stress its implied penalty on saving. In World War II, Great Britain and the United States resorted to extremely high rates of direct taxation in order to accomplish many of the aims of the capital levy.
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The taxpayer appealed the decision; the Second Circuit held that she was entitled to reduce stock value for potential capital gains tax liabilities, even though no liquidation, or asset sale or distribution, was contemplated by the corporation when the stock was gifted.
Mr Brown said: 'When we came into Government, capital gains tax was fixed at 40 per cent and we cut the long-term rate of capital gains tax for business assets held for ten years or more.
Proceeds from the sale of her father's two houses could be used for his care but capital gains tax threatened to gobble up a significant portion of the nest egg.
The MOF and majority of panel members reportedly intend to win the support of social consensus for the levy of capital gains tax.
These reduced tax rates were passed with a sunset provision and are effective through 2010 at which time President Obama has proposed raising the capital gains tax rate to 20% in order to generate billions in new revenues for the federal government.
Business leaders to meet Chancellor for tax talks:The leaders of the UK's four biggest business groups will meet the Chancellor today ( for talks about his changes to the capital gains tax regime.
Carolyn Steppler, private client tax director at KPMG, said: "At a stroke, from 6 April 2008 the capital gains tax they will pay on taxable profits arising from the sale of a second property is cut by over half, falling 22% points from a maximum of 40% to 18%.
7) Once again, the welfare consequences of a capital gains tax that includes owner-occupiers are better than a tax that does not; the welfare consequences of capital gains tax regimes that exclude owner-occupiers are negative for low-income agents because the taxes increase rents; and the welfare consequences of capital gains taxes that exempt owner-occupiers are similar to the welfare consequences of tax regimes that exempt the interest component of interest income from tax.
The region's entrepreneurs would have been pleased to see the lifetime 10% capital gains tax rate increased from pounds 2m to pounds 5m for qualifying gains.
Kate Moore, senior tax manager at ktsowensthomas, said: "The rise in capital gains tax (CGT) from 18% to 40% could lead to investors and businesses selling off non-business assets over the next few weeks to avoid being hit with increased tax duty.
If your mother simply left the property to you in her will there would have been no capital gains tax to pay.