Healey Rejects Calls to Equalise Capital Gains and Income Tax Rates
- Chancellor John Healey has ruled out increasing Capital Gains Tax in the Autumn Budget on October 28, according to reports. The Treasury decided current CGT rates of 18 per cent and 24 per cent remain optimal for revenue.
- Despite pressure to align CGT with income tax rates, the Treasury concluded higher rates would discourage asset sales and reduce total tax revenue. Healey rejected the measure to keep Britain attractive to investors.
- Financier Lord Jim O'Neill told the Commons Treasury Committee on Wednesday that raising CGT would be "a mistake," citing "cautiously encouraging trends" in the UK economy. Tech Nation argued the UK must "compete just as seriously" to retain founder talent.
- With CGT hikes off the table, the Chancellor may consider modest increases to bank taxes instead. Shadow Chancellor Andrew Griffith condemned the Treasury's "kite-flying," saying it "has damaging consequences for economic confidence."
- Healey faces significant fiscal challenges as the Treasury's financial headroom has reportedly slipped to as low as £12bn from £24bn. He must balance constraints while addressing demands for increased defence spending and cost-of-living support.
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John Healey has rejected calls to align capital gains tax with income tax ahead of the October 28 Budget, as the Treasury warns the move could drive investors overseas and… The post Chancellor torpedoes his ‘bat s**t crazy’ £14bn tax raid as fears grow wealthy Britons will flee appeared first on London Business News
UK will not raise capital gains tax to same level as income tax, FT reports
British finance minister John Healey will not raise capital gains tax to the same level as income tax, the FT reported on Tuesday citing four sources, following speculation that a policy change could be announced at the government budget on October 28.
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