Rachel Reeves plan to ‘hike CGT to 39%’ would cost 100million, HMRC’s own figures reveal – as Chancellor is warned tax hike plan will send investors abroad [Video]

17:30 EDT 10 Oct 2024, updated 19:39 EDT 10 Oct 2024

A huge capital gains tax raid will cost the country billions and send investors abroad, Rachel Reeves has been warned.

The Chancellor is considering hiking the levy, but even the taxman has said a massive increase would cost the Treasury billions.

HMRC estimates that a one percentage point increase in the higher rate of capital gains tax would raise just £100million.

But a 10 percentage point increase or more – as was being mooted yesterday – is predicted to cut revenue by around £2billion because so many investors would quit Britain.

It comes amid reports that Ms Reeves is considering raising CGT as high as 39 per cent in the Budget – claims strongly denied by the Treasury last night.

The Guardian said officials were testing a range of 33 per cent to 39 per cent for CGT – levied on the gain, or profit, when an asset is sold.

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