The Times reported that British Chancellor of the Exchequer John Healey has ruled out increasing capital gains tax in his Oct. 28 Budget amid warnings that the change could reduce government revenue.
Capital gains tax applies to profits from selling assets such as property and shares. Healey was warned that a higher rate might lead wealthy taxpayers to leave Britain or delay sales, reducing tax receipts, according to The Times. Sky News separately reported its understanding that Healey had decided against an increase.
Cabinet ministers Wes Streeting and Louise Haigh spoke of raising the tax over the summer, before Prime Minister Andy Burnham took office.
The Guardian has reported the prospect of higher taxes on banks in the Budget. Conservative leader Kemi Badenoch is due to call Tuesday for lower government spending and borrowing, pointing to her party’s proposed £70 billion in cuts, including reductions to welfare and the civil service.
Healey is scheduled to present the Budget on Oct. 28.
