Arabic version: مصادر: هيلي يرفض رفع ضريبة الأرباح الرأسمالية

According to BBC News, Chancellor John Healey has dismissed calls from some Labour MPs to raise Capital Gains Tax (CGT) before next week’s Budget, sources say. Healey is minded not to increase the tax, following warnings that a higher rate could cost the government money if wealthy people leave the UK or delay selling assets.

CGT is charged on profits made when an asset rises in value and is sold, including company shares and properties that are not primary residences. The rate is 18% for basic-rate income-tax payers and 24% for higher- and additional-rate taxpayers. HMRC estimated last year that increasing the higher CGT rate by 10% would reduce Treasury receipts by £3.6bn in 2028-29.

Some prominent Labour figures had argued for CGT to be brought closer to income-tax rates. Before Andy Burnham became prime minister in July, cabinet ministers Wes Streeting and Louise Haigh had expressed support for raising CGT. Haigh had suggested capital gains should rise closer to income tax, while Streeting called for a “wealth tax that works” in May.

Healey had previously indicated a focus on confidence, investment and profit in British business. In a speech last month, he said he wanted the UK to be “a country of wealth creation”. Burnham has also faced warnings over a potential CGT rise, with his former adviser Lord Jim O’Neill saying it would send “the wrong message to business”. Separately, senior banking executives told the BBC they expect taxes on the sector to rise in the Budget.