Fidelity proposes two-tier CGT system to protect savers

In its policy document yesterday, the Government confirmed CGT will rise in line with income tax but Fidelity says such a move is unfair to long-term savers who will suffer "financial hardship". Fidelity is proposing long-term investors should be encouraged to save via a lower rate of CGT aligned to the basic rate of income tax, whilst those who hold investments for less than 12 months should be taxed at their marginal rate, currently 50% for higher earners. It says such a two-tier CGT system is needed to distinguish between speculators only looking for short-term gains and "prudentia...