The Sunday Telegraph’s Christopher Hope reports that Rishi Sunak is considering an increase in capital gains tax, with the Chancellor mulling a move that would bring the charge in line with the higher levels of income tax. The speculation comes after a November 2020 report by the Office of Tax Simplification recommended closer alignment of income tax and capital gains tax rates. Mr Sunak is also reportedly considering increasing corporation tax from 19% to as much as 24%, with it suggested that this increase may be held off until later in the year. Hope says a Conservative manifesto pledge that VAT, inheritance tax and National Insurance would not be increased has “left the door open” for the Chancellor to target CGT and corporation tax. John O’Connell, chief executive of the Tax Payers’ Alliance, has warned ministers against “hammering savers and entrepreneurs”, arguing that CGT is “a double tax that harms investment”, adding that this is “precisely what we should avoid if we want to kick-start growth and help create jobs”.
Read more: The Sunday Telegraph
Visit our website here for more news and product information, or click the button below to submit a short enquiry form for your finance needs.