Chancellor Rachel Reeves confirms Capital Gains tax will increase, with the lower rate rising from 10% to 18%, and the higher rate from 20% to 24%.
She insists this will still be the lowest rate for any European G7 country and, while maintaining the lifetime limit on the Business Asset Disposal Relief, will raise £2.5 billion. Report by Alibhaiz. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
She insists this will still be the lowest rate for any European G7 country and, while maintaining the lifetime limit on the Business Asset Disposal Relief, will raise £2.5 billion. Report by Alibhaiz. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
Category
🗞
NewsTranscript
00:00Let me now come to capital gains tax. We need to drive growth, promote entrepreneurship
00:06and support wealth creation, while raising the revenue required to fund our public services
00:12and restore our public finances. Today, we will increase the lower rate of capital gains
00:18tax from 10% to 18% and the higher rate from 20% to 24%, while maintaining the rates of
00:26capital gains tax on residential property at 18% and 24% too. This means the UK will
00:33still have the lowest capital gains tax rate of any European G7 economy. Alongside these
00:40changes to the headline rates of capital gains tax, we are maintaining the lifetime limit
00:46for business asset disposal relief at £1 million to encourage entrepreneurs to invest
00:53in their businesses. Business asset disposal relief will remain at 10% this year before
01:00rising to 14% in April 2025 and to 18% from 2026-27, maintaining a significant gap compared
01:09to the higher rate of capital gains tax. Together, the OBR say that these measures will raise
01:14£2.5 billion by the end of the forecast.