Question to the HM Treasury:

To ask His Majesty's Government what estimate they have made of the revenue implications of levying Capital Gains Tax at the same rate as Income Tax; and what plans they have, if any, to equalise rates of Capital Gains Tax and Income Tax.

The Government has taken significant steps to reform Capital Gains Tax (CGT), including increasing the main rates of CGT from 10% for basic rate taxpayers and 20% for higher rate taxpayers to 18% and 24% respectively. The rates for Business Asset Disposal Relief and Investors’ Relief have also increased to 18% for disposals made on or after 6 April 2026.  This has created a simpler system by aligning rates across property and other assets.

The Government has also reduced the CGT relief available for disposals to Employee Ownership Trusts (EOTs) from 100% to 50%.

CGT currently raises around £14 billion a year, and receipts are expected to more than double to around £35 billion by 2030-31.

As with all taxes, the Government keeps the tax system under review, and decisions on tax policy are taken by the Chancellor at the budget.