A leading investment platform, Hargreaves Lansdown, is urging Chancellor John Healey not to increase capital gains tax (CGT) in his upcoming Budget. Anna Macdonald, investment strategy director at Hargreaves Lansdown, stated that fresh changes to the tax system could discourage investment in the UK.
Macdonald specifically highlighted a potential shake-up in CGT as "counterproductive." Current CGT rates range from 18 per cent to 24 per cent on most gains, including shares, funds, and residential properties, depending on the taxpayer's band. Rumoured proposals suggest aligning CGT rates with income tax rates of 20 per cent, 40 per cent, or 45 per cent for some taxpayers.
Chancellor John Healey is scheduled to deliver his maiden Budget on 28 October. Economists have forecasted a reduction in Healey's fiscal headroom, which was £23.6bn in March, following the conflict in the Middle East. This situation may necessitate spending cuts or tax increases to meet fiscal rules.
Macdonald also called for the abolition of stamp duty on UK shares to enhance the competitiveness of the domestic market. She noted that the 0.5 per cent tax remains on established UK shares, despite a three-year exemption introduced last year for newly listed UK companies.