CGT own goal warning

Posted on 21 Jan 2014
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Ministers warned over CGT ‘own goal’ City veterans have warned policymakers that increasing capital gains tax would hurt Britain's economy and deliver “the greatest own goal scored in history”. This warning comes as Chancellor Rishi Sunak is said to be considering an increase in CGT in a bid to help balance the books following the economic hit from the coronavirus crisis. Such an increase could raise an extra £90bn over five years, according to analysis from the Public Policy Research think-tank. However, Michael Spencer, founder of broker ICAP and a former Conservative Party treasurer, said the Government “will be doing great damage” to the economy if they increase CGT, arguing that with Britain recovering from Brexit and the pandemic “we need investment into the country.” Andy Bell, head of investment platform AJ Bell, believes harmonising CGT with income tax “would be politically toxic”. Alasdair Haynes, head of trading venue Aquis, said that while the UK has a “tremendous opportunity” to set itself as a low tax, “massively supportive entrepreneurial country” with better regulation to enhance and create greater tax growth, “doing the opposite will be the greatest own goal scored in history.” A Mail editorial reflects on the subject, saying the last thing Mr Sunak should do is “hammer enterprise, savers and aspirational families with a punishing tax raid.”

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