UK to raise capital gains tax rate on share sales
BRITAIN will increase the rate of capital gains tax payable on sales of shares and other assets in an Oct 30 budget statement, the Times newspaper reported on Wednesday, saying the increase for share sales was likely to be several percentage points.
The report, which did not cite named sources, also said capital gains tax rates levied on the sale of second homes would not rise, but some existing reliefs within the capital gains regime would be cut to help raise revenue.
The finance ministry said it did not comment on speculation about tax changes.
The budget, the Labour Party’s first since being elected in July, is being closely watched to see who will be asked to pay more taxes and where spending will be cut to plug what they say is a huge hole in the country’s day-to-day finances left behind by the last government.
Earlier, two government sources told Reuters finance minister Rachel Reeves was looking at introducing tax rises and spending cuts worth £40 billion, as she looks to put investment into services while stabilising the fiscal situation.
The current rate of capital gains tax for higher-earning taxpayers ranges from 20 per cent to 28 per cent depending on the type of asset. The rate for share sales is currently 20 per cent for those on higher incomes.
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Earlier this week, Prime Minister Keir Starmer said a speculation about an increase in the rate of capital gains tax to as high as 39 per cent in this month’s budget was unfounded. REUTERS
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