Healey rules out big increase in Capital Gains Tax

Chancellor John Healey is not expected to raise Capital Gains Tax significantly in his Budget in two weeks’ time.

There had been calls from some senior members of the Government to bring Capital Gains Tax rates in line with Income Tax levels, which would have hit property owners looking to sell.

The highest rate of Capital Gains Tax of 24% is paid by wealthy people, who are subject to 45% Income Tax payments.

Healey (pictured) may opt for just a small increase in Capital Gains Tax to mitigate warnings that investors may leave Britain, the Financial Times reports.

Wealth Tax

Earlier this year, Labour leadership hopeful Wes Streeting called for a Wealth Tax that would target landlords.

In his pitch for the top job of Prime Minister to replace Keir Starmer, Streeting said it was unfair that tenants paid more tax than their landlords.

Streeting claimed it was wrong that Income Tax rates were higher than for Capital Gains Tax, as it “penalised work”.

Last year, former Labour leader Lord Kinnock urged then Chancellor Rachel Reeves to introduce a Wealth Tax in her Budget.

Reeves rejected the proposal of a tax on assets above £10million because wealthy people could easily move their money abroad. But she did raise the amount landlords have to pay, with 22% in Income Tax (up from 20%) on rental income, and 42% and 47% at higher rates.