UK's Streeting, eyeing Labour leadership, wants changes to capital gains tax
Streeting's Proposals and the Labour Leadership Race
Streeting's Support for Capital Gains Tax Reform
LONDON, May 21 (Reuters) - Former British health minister Wes Streeting, a potential candidate for the leadership of the Labour Party, said he backed the introduction of tax changes which would equalise capital gains tax with income tax to make the system "fairer".
Leadership Ambitions and Challenge to Starmer
Streeting said on Saturday that he wanted to challenge embattled Prime Minister Keir Starmer if there is a contest, days after he stepped down and urged Starmer to set a timetable for his departure.
Streeting's Broader Policy Positions
The former health minister, who has already said he believes Britain should seek to rejoin the European Union, said on Thursday that another of his proposals would be changes to capital gains tax.
Understanding Capital Gains Tax in the UK
Current Capital Gains Tax Rules
Capital gains tax is paid on profits of more than 3,000 pounds ($3,900) made when an asset is sold, and rates depend on how much the seller usually pays in income tax, and how large the gain is.
Proposed Changes and Potential Impact
Streeting would raise the rates of the tax from 18%-24%currently to as much as 40% and 45% depending on a person's income tax bracket. According to one study, the change would raise £12 billion a year.
Streeting's Rationale for Reform
"We need a wealth tax that works. A pound made from simply owning assets should not be taxed less than a pound made from a hard day's work," Streeting said in a press release.
Other Labour Leadership Contenders
Andy Burnham's Prospects
Labour's Andy Burnham is seen as a possible frontrunner in any leadership bid, although he needs to win the Makerfield seat near Manchester on June 18 before he can launch a challenge.
Reporting Credits
(Reporting by Sarah Young in London and Gnaneshwar Rajan in Bengaluru; Editing by Kim Coghill and Paul Sandle)
