British Prime Minister Keir Starmer has rejected claims that capital gains tax could rise to 39% in this month’s budget, calling the speculation “wide of the mark,” in an interview with Bloomberg Television at an investment summit in London.
Currently, the tax rate for higher earners ranges from 20% to 28%. Stamer’s comments followed a Guardian report suggesting Finance Minister Rachel Reeves was considering a significant increase, as high as 39%. He stated that such speculation is unfounded, a sentiment echoed by the finance ministry, which labelled the report as “pure speculation.”
Reeves will announce the government’s first budget on 30 October 2024. Capital gains tax currently contributes around EUR 15 billion annually, which is less than 2% of total tax revenue.The Labour party had pledged not to raise main rates for income tax, VAT, or corporation tax, during the election campaign, limiting revenue-generating options.
