Chancellor John Healey kills the Labour Left's hopes of a capital gains tax raid amid fears of an investor exodus
HMRC estimated last year that raising the higher rate of capital gains tax by 10% would cut Treasury receipts by £3.6bn in 2028-9, because wealthy people would leave or hold off selling. Lord Jim O'Neill, a former adviser to Andy Burnham, warned a rise would send 'the wrong message to business'. With headroom reportedly halved to around £12bn, a raid on banks is expected to be the main revenue raiser in the October 28 Budget.
The tax currently stands at 18% for basic-rate payers and 24% for higher-rate payers.
Wes Streeting demanded a 'wealth tax that works' in May after quitting Starmer's government.
Healey's line: 'I want to see this country as a country of wealth creation.'
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