Budget Media Watch: Chancellor will not hike CGT to match income tax

Citing four sources, the FT reported yesterday (13 October) Healey has decided against the move, which could have seen the higher rate increase to up to 45%. Those opposed to such a change have pointed out that raising CGT rates can actually reduce the total amount that is paid because investors cut back or postpone asset sales if rates are excessive.  Taxation at such a high level would also discourage people from investing in the first place, at a time when the government is seeking to increase investment to boost the economy.  While a rise to income tax rate levels now appears o...