To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the IPPR recommendation, published 7 September 2021, which noted that raising tax on capital gains to the same level as income tax would raise an estimated £90 billion over 5 years.
23 November 2021
Capital Gains Tax (CGT) is charged on the net profit from the sale of capital assets above the Annual Exempt Amount of £12,300 per year. CGT raised £9.9 billion in the year 2019-20.
Last year, the Chancellor commissioned the Office of Tax Simplification (OTS) to carry out a review of CGT. The OTS made a number of recommendations, and the Government will respond to them in due course.
The Government keeps the tax system under constant review.