Healey rejects calls to raise capital gains tax, reports say
The Chancellor has ruled out increasing the tax in the 28 October Budget, according to reports, while ministers prioritise growth and investment.
Chancellor John Healey has rejected calls to increase capital gains tax in the forthcoming Budget, according to reports carried by ITV News and The Independent. The position comes days before the government’s 28 October fiscal statement, when wider tax decisions will be announced.
Healey’s reported decision concerns proposals to increase capital gains tax or bring its rates closer to those applied to income. Capital gains tax is charged on profits from the disposal of assets such as shares, second homes and other investments, subject to exemptions and allowances.
The government has not published a Budget document confirming the final tax package. The reported position is therefore a political decision ahead of the statement rather than a completed change in tax law.
ITV reported that Healey had rejected the proposal amid warnings that a rise could discourage investment, encourage people to delay selling assets or lead some wealthy taxpayers to leave the United Kingdom. Those are arguments put forward in the policy debate, not measured effects of a tax change that has not happened.
The Chancellor is expected to present the Budget on 28 October. Until then, ministers may still announce or alter other measures, and the government’s published legislation and official Budget documents will determine what taxpayers actually face.
The debate reflects a familiar tension in tax policy. Supporters of higher capital gains tax argue that gains from assets can be taxed more lightly than earnings from work and that additional revenue could fund public services or reduce pressure on other taxes.
Opponents argue that higher rates could weaken incentives to invest, reduce business formation and lower receipts if transactions are postponed. The strength of those effects depends on the design of the policy, including exemptions, reliefs, timing rules and enforcement.
For households, investors and businesses, the immediate fact is that no new capital gains tax rate has been enacted at the time of this report. Any practical consequences will depend on the Budget statement and subsequent legislation.
Also show where in Europe and in the world
One story, several perspectives
What is established
- John Healey has reportedly rejected calls to increase capital gains tax before the 28 October Budget.
- No new capital gains tax rate has been enacted in the sources reviewed.
- The Budget may still contain other tax and spending measures.
Left
Arguments Capital gains should be taxed more like income because people who earn money from assets can otherwise face a lower effective rate than people who earn through work. Additional revenue could support public services and reduce pressure for taxes that fall more broadly on households.
Values Redistribution, fairness between forms of income and protection of public services.
Consequences A lower threshold for inequality and more revenue are emphasised; possible effects on investment and asset sales are treated as manageable through exemptions and careful design.
Centre
Arguments The government should wait for the Budget’s full costing and distributional analysis rather than decide from headlines. A targeted reform could raise revenue, but the system needs clear rules, administrative simplicity and safeguards against avoidance.
Values Fiscal credibility, evidence-based policy and institutional stability.
Consequences The emphasis is on a balanced package that raises money without creating large behavioural distortions or undermining confidence.
Right
Arguments Increasing capital gains tax risks making Britain less attractive to investors and entrepreneurs. People may defer sales, relocate or hold assets longer, reducing the revenue the Treasury expects and weakening growth.
Values Property rights, investment incentives, enterprise and a competitive tax environment.
Consequences Lower investment, fewer transactions and weaker business growth are emphasised as risks, even if the policy is intended to raise money.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Priya Shah — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The decision is reported by two free UK news sources, but it remains a pre-Budget political position rather than enacted law. The article explicitly marks the economic arguments as competing claims and keeps the final policy outcome open.
- confirmed John Healey has rejected calls to raise capital gains tax before the 28 October Budget. — Reported by ITV News and The Independent. source
- confirmed No new rate has yet been enacted. — GOV.UK lists the current rates and no 28 October 2026 Budget measure was available in the reviewed sources. source
- uncertain Higher rates could affect investment or the timing of asset sales. — These are policy arguments and possible behavioural effects, not confirmed outcomes; the article labels them accordingly. source
Editor's note
The reported ministerial position is not yet an enacted tax change. The article separates reported political intent from confirmed law and avoids treating warnings about economic effects as established outcomes.Sources
More on this in other media
- Channel 4 News — „capital gains tax”
- BBC News — „capital gains tax”
- The Guardian — „capital gains tax”