In short: There is speculation that capital gains tax could be aligned with income tax rates. Nothing is confirmed, but if you plan to sell assets soon, it is worth planning now.
Capital gains tax has been back in the headlines, with speculation that it could be aligned with income tax rates, which would take the top rate as high as 45%.
Right now, you pay 18% or 24% capital gains tax when you sell assets like crypto, property, or stocks and shares. Under a proposal that aligned the rates, that could rise as high as 45% for additional-rate taxpayers.
The thinking behind an idea like this is to raise more tax from wealth-generating assets, on the basis that the current system leans too heavily on taxing people who work rather than people who hold assets.
Nothing is confirmed, and this is still speculation. But if you are planning to sell shares, property, or other assets in the near future, now is a sensible time to speak to a tax adviser about capital gains planning, so you are prepared whichever way it goes.
Rules and rates change, sometimes at short notice. The point is not to panic about a headline, it is to know your position and your options before you commit to a sale.
Common questions
There has been speculation that capital gains tax could be aligned with income tax rates, which would take the top rate as high as 45% for additional-rate taxpayers. Nothing is confirmed, so it remains speculation, but it is a live enough possibility to factor into the timing of a planned sale.
At present you generally pay 18% or 24% capital gains tax when you sell assets such as crypto, property, or stocks and shares, depending on your income band. Rates and allowances change, so check the current position on gov.uk before acting on a sale.
That depends entirely on your position, and the point is not to panic about a headline. If you are planning to sell shares, property, or other assets in the near future, it is a sensible time to take advice on capital gains planning so you are prepared whichever way the rules go.
Know your position and your options before you commit to a sale rather than reacting to a headline. Speak to a tax adviser about capital gains planning, especially if a sale of assets or the business is on the horizon, so the decision is made from knowledge, not speculation.
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Simon Jacobs is a Chartered Tax Adviser (CTA · ACA) and ex-PwC, founder of SRJ International. He advises founder-led UK marketing agencies on tax, profit extraction and exit. Read his full profile →