MNI BRIEF: Beijing To Protect Firms From U.S. Bill - MOFCOM

MNI: SNB CUTS KEY POLICY RATE BY 50 BPS TO 0.5%

MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI: SWEDEN FINAL NOV CPIF +1.8% Y/Y

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

UK FISCAL: Guardian reports that CGT could be raised to between 33-39%

UK FISCAL
Homepagemarkets-real-timePolitical RiskPolitical Risk BulletCEEMEABulletUKGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
  • The Guardian has reported that the Treasury is considering raising capital gains tax (CGT) to between 33-39% with some sources in the Treasury telling the newspaper that some of the planning was in "complete disarray." But it does note that CGT will not be equalised with income tax (where the additional rate of 45% is the highest levied in the UK). Full story here.
  • The Guardian notes that: "At the lowest end of a possible increase – if 28% were to move to 33% for instance – a few hundred million pounds could be raised for the exchequer, the modelling suggests. Increasing CGT to the middle of the range across different classes of assets could raise about £1bn, it shows. In the more extreme scenario, such as hiking it to 39%, then the annual amount raised by CGT could actually fall after five years."
  • The article also repeats previous reports that big increases in taxes on private equity and non-doms would cost more money than they raise.
  • The first draft of the Budget has already been submitted to the OBR for full costings with another two rounds due. And with the final costings from the OBR due to be delivered to Chancellor Reeves on 25 October (in two weeks time) there is a very short turnaround now to finalise measures.
  • As we have noted in previous bullets, a lot of the measures seem to be watered down from the manifesto as the OBR has reportedly told the Treasury that less extreme measures will raise more money. However, given the manifesto commitments to not raise income tax, national insurance or VAT and to maintain the "triple lock" for pensions, there are not a lot of measures left to increase revenues.
285 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • The Guardian has reported that the Treasury is considering raising capital gains tax (CGT) to between 33-39% with some sources in the Treasury telling the newspaper that some of the planning was in "complete disarray." But it does note that CGT will not be equalised with income tax (where the additional rate of 45% is the highest levied in the UK). Full story here.
  • The Guardian notes that: "At the lowest end of a possible increase – if 28% were to move to 33% for instance – a few hundred million pounds could be raised for the exchequer, the modelling suggests. Increasing CGT to the middle of the range across different classes of assets could raise about £1bn, it shows. In the more extreme scenario, such as hiking it to 39%, then the annual amount raised by CGT could actually fall after five years."
  • The article also repeats previous reports that big increases in taxes on private equity and non-doms would cost more money than they raise.
  • The first draft of the Budget has already been submitted to the OBR for full costings with another two rounds due. And with the final costings from the OBR due to be delivered to Chancellor Reeves on 25 October (in two weeks time) there is a very short turnaround now to finalise measures.
  • As we have noted in previous bullets, a lot of the measures seem to be watered down from the manifesto as the OBR has reportedly told the Treasury that less extreme measures will raise more money. However, given the manifesto commitments to not raise income tax, national insurance or VAT and to maintain the "triple lock" for pensions, there are not a lot of measures left to increase revenues.