Chancellor John Healey is contemplating an increase in capital gains tax (CGT) as part of his revenue-raising strategies for the upcoming budget. Currently, CGT rates stand at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, with a higher rate for fund managers. Recent data indicates a significant rise in CGT revenue, attributed to changes in tax allowances and rates.
Debate surrounds the fairness and economic impact of CGT, with some arguing it should be raised to align with income tax rates, while others warn that higher rates could deter investment. Business groups express concern over the uncertainty this creates for potential investors and the broader economy.