Healey rejects calls to equalise capital gains and income tax rates
News Source
β’Tue, 13 Oct 2026 12:43:58 GMT
π° What Happened
UK chancellor John Healey has ruled out making capital gains tax match income tax rates. Capital gains tax is paid on profits from selling things like shares or property. Income tax is paid on wages.
Some groups argue the two should be the same. Healey has rejected those calls. He is preparing his first budget as chancellor.
π The Backstory
In the UK, money earned from a job is taxed at a higher rate than money made from investments. Critics say this is unfair to workers and lets wealthy people pay less.
Supporters say lower investment taxes encourage people to save and build businesses. The debate often comes up before a budget, when the government looks for ways to raise money. Campaigners had hoped for a change this time.
π― Why It Matters
Tax rules decide how much people keep from work and savings. Any change here could affect wages, savings and house prices.
UK chancellor John Healey has ruled out making capital gains tax match income tax rates. Capital gains tax is paid on profits from selling things like shares or property. Income tax is paid on wages.
Some groups argue the two should be the same. Healey has rejected those calls. He is preparing his first budget as chancellor.
In the UK, money earned from a job is taxed at a higher rate than money made from investments. Critics say this is unfair to workers and lets wealthy people pay less.
Supporters say lower investment taxes encourage people to save and build businesses. The debate often comes up before a budget, when the government looks for ways to raise money. Campaigners had hoped for a change this time.
Tax rules decide how much people keep from work and savings. Any change here could affect wages, savings and house prices.