CGT revenue 'will fall by £2.5bn'
Saturday 19 June 2010
Tax revenues will fall by £2.48bn if the Government raises the rate at which capital gains tax (CGT) is charged, it was claimed yesterday.
In next week's emergency Budget, Chancellor George Osborne is expected to unveil plans to raise the rate at which CGT is charged on non-business assets from its current rate of 18 per cent to 40 per cent or even 50 per cent.
But the Adam Smith Institute, a free market think-tank, warned that rather than increasing the Treasury's revenue, the proposal was likely to reduce the amount of money received from CGT and other taxes by nearly £2.5bn – equivalent to having to cut an extra 30,000 public-sector jobs.
The institute said evidence from other countries suggested that every 1 per cent rise in the rate of CGT led to a 2 per cent fall in revenues. Its analysts estimated that, overall, bringing CGT in line with income tax would lead to a £880m fall in revenue, while income from other taxes would drop by £1.6bn because of the impact on economic activity.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Is this bridge haunted by the ghost of nu rave?
- 3 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
East 17 bandmember Brian Harvey in 'very desperate situation’
Is this bridge haunted by the ghost of nu rave?
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
Saudi Arabia says it won't rule out building nuclear weapons
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...