Fresh concerns over capital gains tax rise

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.