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%.

 

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