Chancellor rejects calls to raise Capital Gains Tax in Budget
Chancellor John Healey has officially ruled out increasing Capital Gains Tax in the upcoming UK Budget. The decision follows concerns that higher taxes could trigger an investor exodus and negatively impact the government's wealth creation goals.
Why it matters
This decision signals a shift in Labour's economic strategy, prioritizing business confidence and investment over immediate tax revenue increases.
Image source, AFP via Getty Images Image caption, Chancellor John Healey says he wants to avoid an investor exodus from the UK
Chancellor of the Exchequer John Healey has dismissed calls from some Labour MPs to increase Capital Gains Tax (CGT) when he hands down his first Budget.
Cabinet ministers Wes Streeting and Louise Haigh both previously voiced support for raising CGT before Andy Burnham became prime minister in July.
Ahead of next week's Budget, Healey ruled out lifting CGT - which is imposed on the profit people make when they sell an asset that has increased in value, such as shares in a company or properties which are not primary residences.
The move followed warnings that it could end up costing the government money if wealthy people leave the country or defer selling off assets, the Times newspaper reported.
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