Middle-class savers and entrepreneurs face being hammered by a multi-billion-pound tax raid under plans being considered by the Chancellor to repair the public finances.
The Treasury’s independent tax watchdog has recommended a major overhaul of the capital gains tax (CGT) regime on the sale of assets, which could triple the number of people hit by the duty.
In a report published on Wednesday, the Office of Tax Simplification (OTS) recommended increasing CGT rates by aligning them more closely with income tax bands, as well as cutting annual tax-free allowances.
The controversial recommendations will be examined by Chancellor Rishi Sunak, who is under pressure to repair the battered public finances.
The controversial recommendations will be examined by Chancellor Rishi Sunak, who is under pressure to repair the battered public finances
Tonight experts warned investors and entrepreneurs to be on ‘high alert for a tax raid’ on their finances.
They also fear a big hike in CGT would be a blow to the City, putting people off buying Laws and Regulations selling shares in listed companies.
As well as wealthier savers, those who inherit property, second-home owners, buy-to-let landlords and entrepreneurs who sell their businesses could be among the hardest hit by the proposed tax grab.
Responding to the OTS report, the Treasury stressed its focus was on ‘jobs and the recovery’, having already cancelled the Autumn Budget due later this month.
Former Brexit minister David Davis said: ‘The total focus of the Treasury should be on driving the economic recovery. In such circumstances, tax increases like these amount to economic self-harm.
‘The Treasury would have to be pathologically stupid to implement such nonsense.
What we need now is more saving, more investment, more wealth creation and more job creation. This deeply un-Conservative policy would undermine all of these things.’
Tonight experts warned investors and entrepreneurs to be on ‘high alert for a tax raid’ on their finances