UK's Healey rules out capital gains tax increase in budget, Times reports

UK Rules Out Capital Gains Tax Increase, Focuses on Growth and Bank Levy

British Finance Minister's Budget Decisions and Economic Strategy

Capital Gains Tax Policy

Oct 19 (Reuters) - British finance minister John Healey has rejected calls to raise capital gains tax in his first budget on October 28, opting instead to prioritise economic growth and business investment, the Times reported on Monday.

Reasons for Ruling Out Increase

• Healey ruled out the move after being warned that higher capital gains taxes could ultimately reduce government revenues if wealthy individuals left Britain or delayed selling assets, the Times said

Treasury's Response

• Britain's Treasury declined to comment, saying that “decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”

Alternative Revenue Measures

Bank Levy as Main Revenue Source

• The budget's main revenue-raising measure will be a levy on banks, with the proceeds used to fund a targeted, temporary package of cost-of-living support, the report said

Fiscal Pressures and Spending Plans

• Healey is under pressure to raise billions of pounds in tax at his first budget to offset higher borrowing costs and fund Prime Minister Andy Burnham's plans for more defence spending and expanded social care.

Further Details on Capital Gains Tax

Comparison with Income Tax

• The Financial Times reported last week that Healey had ruled out raising capital gains tax to match income tax rates, though a smaller increase was reported to be under consideration

Current Rates and Revenue

• Capital gains tax, currently charged at ​18% for basic-rate taxpayers and 24% for ​higher-rate taxpayers, raised £24 billion ($31.92 billion) in the 2025/26 tax year

Exchange Rate Information

($1 = 0.7517 pounds)

Reporting Credits

(Reporting by Carlos Méndez in Mexico City; Editing by Sanjeev Miglani)