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    Reeves to consider capital gains tax plan to help fix ‘broke Britain’
    United Kingdom

    Reeves to consider capital gains tax plan to help fix ‘broke Britain’

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    8 Comments

    1. Putrid-Location6396 on

      CGT needs to at least be bought closer to income tax rates. It doesn’t need to go the full way, just a bit closer, and would raise billions.

    2. denyer-no1-fan on

      This should be a no brainer. Executives are getting paid via shares and not cash after a certain threshold because they’d only be taxed 20% and not 45%.

    4. Generic118 on

      ”  And pension contributions are currently tax deductible, with officials having made the case for introducing a 30 per cent tax on contributions”

      When was this talked about?

      This seems the far bigger story?

    5. Possible-Pin-8280 on

      Realistically all of our tax rates are set at reasonable or high levels.
      We need to start thinking more dynamically about generating revenue or cutting costs that isn’t “raise taxes” or “shut down essential services”. This is just a never ending circle of bullsh*t.

      I’m still in shock at how much has been spent on Asylum hotels.

    6. SpinIx2 on

      There will be significant behaviour change which would impact the take from either the CGT change or the pension change.

      I own a business (built from scratch and now providing a livelihood for 75 odd people paying taxes in the UK) that on sale would have previously seen me benefit from entrepreneur’s relief, that was taken away during Sunak’s chancellorship and it’s less generous replacement meant that the tax I’ll pay on disposal when I retire in a few years time will be about 90% higher than under ER and whilst I’m grumpy about that I’ve come to terms with it. If CGT rates are bought in line with income tax rates my tax on retirement will more than double again. That may well be enough for me to be more than grumpy about it and it’s certainly enough for me to join the ranks of those that Reddit loves to hate and pay for some expensive tax accountant to help me mitigate the impact. And I think rich people should be taxed to pay for public services.
      Eta : I’m sure it will also change the behaviour of the next generation of entrepreneurs, and not in a positive way despite Reeves being a pro – growth chancellor.

      The article also mentions a 30% charge on pension contributions (presumably not on the part that would only have been taxed at 20% if not put in pension). There’s little/no detail but I wonder if that is in addition to the tax on pension withdrawal? If so it will massively change the incentives for using pensions as a savings vehicle for retirement. It’s big thing is that tax free income is left to grow before being taxed but it is then (largely) taxed on exit from the pension. If it’s taxed in the way in what’s the point of it?

    7. je97 on

      Rather than raising taxes, why does it seem impossible to our politicians to make a few savings here and there?

    8. savvymcsavvington on

      I wonder how much can be gained from taxing second home ownership (not stamp duty/council tax) or landlords that own more than 1 property (excluding charities)

      It either generates money for the government or forces people to sell, freeing up property to home owners