Capital Gains Tax: Britons pay out millions - Rishi Sunak considers increase in levy
Capital Gains Tax receipts recently gained by HM Revenue and Customs (HMRC) were recorded in the government’s latest statistics, which painted a picture of how tax was being managed this year. They showed a £72million taking in October, a sharp increase from the £4million collected by the government in October 2019. Capital Gains Tax is a levy charged on the profit when a person sells an asset that has increased in value.
The review made a number of suggestions regarding how the levy could potentially be altered in the future.
It read: “The disparity in rates between Capital Gains Tax and Income Tax can distort business and family decision-making, and creates an incentive for taxpayers to arrange their affairs in ways that effectively re-characterise income as capital gains.”
Reforms, the report suggested, could potentially raise £14billion for the Treasury.
Such a review would be most likely to affect middle-income and high-income earners, who should be aware of the potential for change.
