Aug 31, 2021

Capital gains tax could be about to rise as Chancellor Rishi Sunak seeks to raise funds and decrease Government borrowing, according to a report in the Express.

Speculation of this originally emerged after the publication of a report by the Office for Tax Simplification (OTS), which recommended aligning capital gains tax and income tax rates.

Taxpayers currently face two rates on capital gains tax - basic-rate taxpayers pay 10% and 18% on qualifying assets property respectively, while higher-rate taxpayers pay 20% on assets and 28% on property.

If the Government were to align capital gains tax rates with income tax rates, savers could pay a 45% rate on disposal of a qualifying asset or property they sell for a profit. It would, however, also raise £14 billion a year for the public purse, according to the OTS.

Some experts are concerned about the potential for an increase, including the Taxpayers' Alliance, a pressure group advocating lower taxes, which said:

"Capital gains tax is a double tax that harms investment, which is precisely what we should avoid if we want to kickstart growth and help create jobs."

Talk to us about capital gains tax.

Get in contact with us