Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of taxing income from capital by abolishing the separate Capital Gains Tax-free allowance and taxing capital gains and salaries through a single allowance.

The Government keeps all taxes under review, and any changes are made at fiscal events within the context of wider public finances. The Government’s priority is supporting jobs and the economic recovery from COVID-19, and further details will be set out at the forthcoming Budget.

Last year, the Chancellor commissioned the Office of Tax Simplification (OTS) to carry out a review of Capital Gains Tax (CGT), including its boundary with Income Tax. The Government will respond to the OTS report in due course.

Any changes to the tax system will balance the need to raise revenue with the principles of fairness and market efficiency.