UK Chancellor Rejects Calls to Raise Capital Gains Tax Ahead of Budget

3-line summary

• UK Chancellor John Healey has dismissed calls from some Labour MPs to raise Capital Gains Tax (CGT) ahead of next week's Budget, according to Treasury sources first reported by the Times; CGT currently stands at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers on profits from selling assets such as shares or non-primary-residence property.
• The decision follows warnings that raising CGT could cost the government money if wealthy individuals leave the country or defer asset sales; Healey previously signaled his approach in a speech emphasizing business profitability and investment confidence, while Goldman Sachs chief economist Lord Jim O'Neill warned a CGT hike would send "the wrong message to business."
• Cabinet ministers Wes Streeting and Louise Haigh had both previously backed equalizing CGT with income tax rates before Andy Burnham became prime minister in July; separately, senior banking executives told the BBC they expect Healey to raise taxes on the banking sector, which has been reporting strong profits.

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