Chancellor Rachel Reeves unveiled Labour’s first budget since being elected to government – with a focus on slashing national debt, boosting the UK economy and protections for working Brits.
Labour’s autumn budget saw the Finance Minister announce an increase in capital gains tax to 18 per cent and 24 per cent for different earners, which she promised would ‘raise £2.5 billion for the economy’. The carried interest rate rises to 32 per cent for fairness in the fund management sector.
The changes have been designed to “promote business growth and wealth creation while supporting public finances”.
Labour has revealed plans to raise capital gains tax rates, aligning them more closely with property taxes. Rachel Reeves said the revised would drive economic growth while generating crucial revenue for public services.
The Chancellor pointed out that despite the CGT increase would retain the UK’s position as one of the lowest capital gains tax rates among Europe’s G7 economies.
Reeves emphasized the balance between encouraging entrepreneurial ventures and ensuring fairness in the taxation system, particularly in the fund management sector where carried interest taxation will rise to 32 per cent.
