UK Chancellor Rules Out Capital Gains Tax Increase Ahead of Budget
Cabinet ministers Wes Streeting and Louise Haigh had previously expressed support for increasing the tax before Andy Burnham became prime minister in July.
With next week’s Budget approaching, Healey is understood to be leaning against raising CGT, which applies to profits earned when individuals sell assets that have increased in value. These assets can include company shares and properties that are not the seller’s main residence.
The decision follows concerns that a higher tax burden could ultimately reduce government revenue if wealthy individuals relocate abroad or postpone selling their assets to avoid paying the increased levy.
Under the current system, people paying income tax at the basic rate face a CGT rate of 18%. Those in the higher and additional income tax brackets pay 24%.
HM Revenue and Customs estimated last year that increasing the higher CGT rate by 10 percentage points could reduce Treasury revenue by £3.6 billion in the 2028–29 financial year.
Healey offered an indication of his economic priorities in a speech last month, highlighting the role of profitability among businesses and self-employed workers.
"I want to see this country as a country of wealth creation. I want our government decisions and policies to raise the levels of confidence, and investment, and profit in British business," Healey said.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
