Capital Gains Tax: Income Tax
(asked on 25th October 2022) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment has he made of the potential amount of revenue that could be raised by aligning Capital Gains Tax rates with Income Tax.
This question was answered on 2nd November 2022
In 2020, the then Chancellor commissioned the Office of Tax Simplification (OTS) to carry out a review of Capital Gains Tax (CGT). The OTS provided a costing on aligning CGT rates with those of Income Tax. However, this was a static costing, and so did not account for behavioural effects which would significantly reduce the yield.