u/0v3r9k

I think the new cgt tax changes might not actually hurt me as much as I initially thought they would.

If we take a look at DHHF and conservatively expected an 8% total return, of which 2.5% is distributions, then the capital growth is only 5.5% per year. If inflation happens to be 2.75% then doesnt this mean the old cgt and new cgt would have you paying the exact same amount of tax?

I suppose that would only be the case if you already used up the tax free and 16% thresholds. But if you have at least 1.3M invested (per person) then the grossed up dividend alone should put you into the 30% tax rate regardless right?

Is my thinking correct here or do I sound like a crazy person?