Pre Budget Report 2009: Capital gains tax could reach 25%

Posted by Jon Wilcox for Finance Week PM | on Fri, 30/10/2009 - 11:52 2672 2 comments

The chancellor is expected to increase the main rate of capital gains tax to 25% in the upcoming Pre-Budget Report, according to predictions from MacIntyre Hudson.

The accounting firm, which released its Pre-Budget Report predictions this week, said the government may try to close the discrepancy between the main rate of capital gains tax (currently 18%) and the standard and higher rates of income tax (20% and 40% respectively).

Continued...

Amazingly

Phil Rees | Thu, 05/11/2009 - 12:42 | Permalink

this would be the first ever increase in the rate of capital gains tax by a Labour chancellor since the tax was introduced in 1965.

It is depressing

Trevor Scott | Thu, 05/11/2009 - 18:55 | Permalink

... to think how long it will be before they start reducing taxes again.

Can anyone else remember the genuine sense of excitement, after years of depression and high taxes, in the run up to Nigel Lawson’s budgets that at the time seemed to signal a new age of hope for the country. Since then, budgets as an entertainment event have become bland, undermined by leaks and these pre-budget speaches. The next one may only be interesting in terms of the colourful projections of tax collections and rates that will probably never happen.