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MNI INTERVIEW: CGT Reform To Boost Revenue, Capital Allocation

The director of the Centre for the Analysis of Taxation at Warwick University Arun Advani talks about UK tax structures.

MNI (LONDON) - Equalising capital gains and income tax rates would fill around half of the fiscal UK government’s fiscal “black hole' while reducing misallocation of capital and labour, the director of the Centre for the Analysis of Taxation at Warwick University told MNI.

With capital gains tax rates running at between 20% to 28% for individuals on the higher 45% income tax rate, estimates of revenue gains from equalising the two regimes run from one to two pennies on the pound, or GBP7-14 billion, noted Arun Advani, also a member of the Office for Budget Responsibility’s advisory panel.

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MNI (LONDON) - Equalising capital gains and income tax rates would fill around half of the fiscal UK government’s fiscal “black hole' while reducing misallocation of capital and labour, the director of the Centre for the Analysis of Taxation at Warwick University told MNI.

With capital gains tax rates running at between 20% to 28% for individuals on the higher 45% income tax rate, estimates of revenue gains from equalising the two regimes run from one to two pennies on the pound, or GBP7-14 billion, noted Arun Advani, also a member of the Office for Budget Responsibility’s advisory panel.

Keep reading...Show less