Healey Reportedly Rules Out Full Capital Gains Tax Equalisation

Chancellor John Healey has reportedly ruled out bringing capital gains tax rates into line with income tax rates, according to a report based on people familiar with Treasury deliberations, ahead of the Autumn Budget scheduled for October 28. The reported decision concerns full equalisation, not every possible change to capital gains tax. A more modest increase has not been ruled out, and the Treasury is also reportedly developing relief intended to encourage entrepreneurs who sell businesses to reinvest the proceeds in UK companies. The terms of any measure have not been announced. The Treasury declined to comment on the reported deliberations. Healey has not publicly confirmed the decision, and the Budget remains the point at which the government is expected to set out its tax plans. Capital gains tax is charged on profits from asset sales. The reported rates are 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, while income tax rates cited in the reporting range from 20% to a top rate of 45%. Proponents of equalisation have argued that investment gains should be taxed more like earnings.