Chancellor rejects calls to raise capital gains tax in budget
Chancellor John Healey has dismissed calls from some Labour MPs to increase Capital Gains Tax, according to Treasury sources. The decision comes ahead of next week’s Budget, and it’s understood Healey is minded not to raise the levy. That was first reported by the Times.
Cabinet ministers Wes Streeting and Louise Haigh had voiced support for raising CGT before Andy Burnham became PM in July. Streeting called for a “wealth tax that works” in May. Haigh suggested capital gains should go up closer to income tax. But Healey has already ruled out levelling the two rates, the Financial Times said.
The chancellor previously indicated he wants the UK to be a country of wealth creation. He believes government policies should lift confidence, investment and profit. Warnings that a CGT rise could cost the government money if wealthy people leave or defer selling assets seem to have weighed on the decision. Lord Jim O’Neill, Burnham’s former adviser, had said a rise would send “the wrong message to business”.
