Labour: No plans to increase CGT

Shadow Chancellor Rachel Reeves says Labour has no plans to increase capital gains tax. Asked on BBC Radio 4’s Today programme if Labour would increase the rate, Ms Reeves said: “I don’t have any plans to increase capital gains tax.” She added: “There are people who have built up their own businesses who maybe at retirement want to sell that business. They may not have had huge income through their life if they’ve reinvested in their business, but this is their retirement pot of money.” She also said the Labour wants Britain to be “the best place to start and grow a business.” Questions over Labour’s position on CGT came after deputy leader Angela Rayner appeared to criticise the rate of the tax following the publication of the Prime Minister’s financial affairs. Rishi Sunak’s overall tax rate was around 22% because most of his earnings came from capital gains related to a US-based investment fund. The report prompted Ms Rayner to hit out at a tax system “in which the Prime Minister pays a far lower tax rate than working people”. For higher earners, CGT is currently 28% on gains from residential property and 20% on gains from other assets. Meanwhile, income between £50,271 and £150,000 is taxed at 40%, while the highest earners pay 45%.

 

Acer Accounts can assist you with your taxation, year-end accounts, self assessment, bookkeeping, accounting and payroll services – we are your tax advisor near you

 

 

BBC News

Related Post

Reeves urged to abolish the £175,000 residence nil-rate band The Chancellor is facing pressure to eliminate the £175,000 residence nil-rate band in her upcoming Budget. Rachel Reeves previously argued that this allowance, which costs around £2bn annually, primarily benefits the wealthy and now the Resolution Foundation is pushing her to scrap it. In 2011, she stated: “Raising the inheritance tax limit to £1m for […] By Lisa Brownlow, 18 September 2024
Read Now
Small firms responsible for 80% of tax evasion Analysis by the National Audit Office (NAO) shows that small firms are responsible for more than 80% of tax evasion. The report cites HMRC estimates that £5.5bn was lost to deliberate tax evasion in the 2022/23 financial year, with small businesses responsible for 81% of the total. Despite a reduction in the overall tax gap […] By Lisa Brownlow, 16 September 2024
Read Now
Threshold freeze creates 4.4m more taxpayers The number of people paying income tax has increased by 4.4m in three years due to the freeze on thresholds, according to HMRC data. The figures also show that the decision to freeze the personal threshold at £12,570 has pulled an additional 1.77m pensioners into the income tax bracket. There are currently an estimated 37.4m […] By Lisa Brownlow, 3 July 2024
Read Now
↑