Multiple reports say Labour figures including Andy Burnham are considering a change to the UK’s capital gains tax (CGT) that would align CGT rates with income tax. The idea is presented as part of a wider tax policy discussion in which a potential Chancellor and Burnham are described as supporters. However, outside experts cited by the reports warn that increasing CGT could reduce incentives for investors to sell assets. That, in turn, could lower the amount of taxable gains realised and therefore undermine expectations for higher revenues. The reporting also claims the impact could be significant for the Exchequer, with estimates suggesting losses to HM Treasury of up to £8 billion per year if investor behaviour changes. The articles do not dispute the policy direction among the proponents, but they highlight uncertainty over whether the government would collect more overall revenue once behavioural effects are taken into account. The discussion therefore centres on the balance between higher rates on capital gains and potential reductions in transactions and reported gains.
Concerns raised over proposed rise in UK capital gains tax to match income tax
Multiple reports say Labour figures including Andy Burnham are considering a change to the UK’s capital gains tax (CGT) that would align CGT rates with income tax. The idea is presented as part of a w...
- Andy Burnham and allies are discussed as considering changes to UK capital gains tax.
- The proposal aims to align capital gains tax rates with income tax.
- Experts warn higher CGT could discourage asset sales and reduce taxable gains.
- The reports cite estimates that the policy could cost HM Treasury up to £8 billion per year.
- There is uncertainty over whether the policy would raise the revenue proponents expect.
A key ally of the would-be Prime Minister and one of his possible Chancellors want to increase Capital Gains Tax to match income tax, but there are fears it would not bring in hoped-for revenue.
1 month agoA key ally of the would-be Prime Minister and one of his possible Chancellors want to increase Capital Gains Tax to match income tax, but there are fears it would not bring in hoped-for revenue.
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