Capital gains tax: Landlords and entrepreneurs told to be on 'high alert' for tax rise
Wealth taxes have long been the subject of speculation, with various reports since March’s Budget indicating that Chancellor of the Exchequer Rishi Sunak could change them. His Government’s controversial National Insurance hike, which looks set to be laid out this week, has been roundly criticised for being unfair on younger people. As a result, pressure is now building on Labour Party leader Keir Starmer to push for taxes on the wealthiest as an alternative.
The Mayor of Greater Manchester, Andy Burnham, said last week: “The fairest way of providing social care is on NHS terms through a national care service, and the fairest way of raising the funding to pay for it is by taxing wealth, not work.
“The Government should be looking at reforming taxes and reliefs on assets, land, pensions, property and excessive earnings and profits before hitting younger, low-paid workers with the bill.”
This could mean capital gains tax and inheritance tax, which had already been in Mr Sunak’s sights for reforms, are increasingly vulnerable to changes.
In November last year, the Office for Tax Simplification (OTS) was asked by the Chancellor to set out proposals on how to raise funds amid the pandemic.
To the fury of many Tory MPs, they pointed to wealth taxes as a way to raise funds, suggesting capital gains tax could be aligned with income tax.
