Hargreaves Lansdown warns Healey: Don’t ‘penalise investors’ with capital gains hike
A leading investment platform is urging chancellor John Healey to not “penalise investors” at the upcoming Budget, as Brits brace for potential tax hikes. Anna Macdonald, investment strategy director at Hargreaves Lansdown, said fresh upheaval to the tax system could discourage investment in the UK at a time when economic growth is needed. In particular, [...]
Investment platform Hargreaves Lansdown is cautioning Chancellor John Healey against implementing higher taxes on investors ahead of the October 28th Budget. Anna Macdonald, investment strategy director, warns that such a move could "penalise investors" and harm the UK economy. The potential hike in capital gains tax (CGT) is of particular concern, as it could deter investment when economic growth is needed most.
Currently, CGT rates range from 18% to 24% on most gains, depending on tax bands and asset types. Rumoured proposals suggest aligning CGT rates with income tax rates of 20%, 40%, or 45% for some taxpayers, with broader reform also possible. Macdonald emphasizes that raising taxes on investments goes against the UK's fiscal rules and could lead to an exodus of capital to international markets.
She urges investors to avoid making hasty decisions and advocates for scrapping stamp duty on UK shares to bolster the domestic market.
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