Chancellor rejects calls to raise Capital Gains Tax in Budget
Influential Labour figures had been pushing for equalising CGT and income tax, but critics have said this could drive wealthy people out of Britain.
Chancellor John Healey has rejected calls from Labour MPs to raise Capital Gains Tax (CGT) in his upcoming Budget, despite previous support from Cabinet ministers Wes Streeting and Louise Haigh. CGT is a tax imposed on the profit made from selling assets that have increased in value, such as shares or property. Healey's decision to maintain the current CGT rate follows warnings that it could lead to financial loss for the government if wealthy individuals leave the country or postpone asset sales.
The chancellor has long advocated for the UK to be a nation of wealth creation, emphasizing policies that boost confidence, investment, and profit. Burnham's former adviser, Lord Jim O'Neill, cautioned that raising CGT could convey a negative message to businesses. While some influential Labour figures advocated for aligning CGT with income tax rates, Healey has ruled out equalizing the two tax rates.
Defence Secretary Wes Streeting had previously called for a "wealth tax" in May, shortly after leaving his ministerial role in the former Prime Minister Sir Keir Starmer's government.
Written by urgent.news from BBC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
