HMRC Stats Show Wes Streeting’s Flagship Tax Idea Would Lose £7 Billion
Wes Streeting has proposed a significant increase in Capital Gains Tax as part of his leadership pitch. However, HMRC statistics indicate that such an increase could lead to a substantial loss in tax revenue, contradicting Streeting's claims. The proposal has drawn criticism for misunderstanding the implications of capital gains taxation and its impact on the economy.
- ▪Wes Streeting has called for a hike in Capital Gains Tax to match income tax rates.
- ▪HMRC's calculations suggest that increasing the higher Capital Gains Tax rate could reduce revenue by £3.5 billion.
- ▪The average gain per CGT taxpayer was about £174,000 in 2023-4, predicting a £7 billion loss in tax revenue.
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Wes Streeting has called for a massive hike in Capital Gains Tax as part of his pitch for the leadership. Or the highest office possible under Burnham… Streeting complained to the BBC’s Political Thinking podcast about the tax system and proposed a “wealth tax that works“: “A member of my family is a cleaner in Lancashire. She pays a higher tax rate on her salary than her landlord pays for the growing value of the home she lives in. She slogs her guts out, he puts in far less effort, yet the state rewards him more than her. And we wonder why people are angry. The system is penalising work. It’s not fair and it’s bad for our economy. We need a wealth tax that works. A pound made from simply owning assets should not be taxed less than a pound made from a hard day’s work.
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