Investors cheer end of ‘damaging’ capital gains tax Budget speculation
Investment firms have welcomed reports that John Healey has ruled out a “damaging” capital gains tax raid at the Autumn Budget, after warnings the move could harm the domestic economy and weigh on Britain’s appeal to investors. The Chancellor has decided against raising capital gains tax (CGT) at the Autumn Budget next week, City AM [...]
Investment firms are pleased that John Healey, the Chancellor, has ruled out raising the capital gains tax (CGT) in the upcoming Autumn Budget. This decision has been welcomed by the City, as it provides reassurance to investors and prevents speculation ahead of the budget meeting. The Chancellor decided against raising the levy from its current rate of 24% for higher-rate taxpayers, despite pressure from some Cabinet members.
Fears of a higher CGT had led to a rush to sell assets in the run-up to previous Budgets. Wealth management firms have noted an increase in clients questioning whether to bring forward asset sales or adjust their investment plans ahead of the Budget. Critics argue that a higher CGT could cause wealthy Brits to leave the UK or delay asset sales, potentially harming the Exchequer.
Industry bodies, including UK Private Capital, have welcomed the decision, stating that raising CGT would send the wrong message to investors and weaken the UK's international competitiveness. Some suggest the Chancellor could make other "tweaks" to the tax regime to raise funds, such as changing the annual allowance or cutting it altogether.
However, such changes could negatively impact investor confidence and discourage domestic investment.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
