Effectiveness of Labour's immediate CGT hike under question

Autumn Budget 2024

The government’s move to hike capital gains tax (CGT) rates in last week's (30 October) Autumn Budget may have been more effective had it waited to bring in changes from the next tax year rather than immediately, a tax expert has said.

The main rates of CGT for non-residential property disposals were raised from 10% and 20% to 18% and 24%, respectively, effective from Budget day. The government is expected to raise £90m this tax year thanks to CGT changes, according to an impact summary published in a Budget policy paper. This is expected to rise to £1.44bn in 2025/26 and generate an additional £2.49bn by 2029/30. Autumn Budget 24: Labour raises lower and higher rates of capital gains tax with immediate effect However, FSL tax reporting analyst Alex Ranahan told Investment Week sister title Professional Adviser t...