Well this is Going to affect investment and savings in the country.
We are definitely going to see a CGT increase here in the UK most people claim at the end of October in the new Labour budget.
But at 45% that type of punishment would simply destroy the incentive to realise a gain here in the UK:
A good critique why it wasn't proposed before the elections
https://www.rsmuk.com/insights/weekly-tax-brief/why-labour-are-not-raising-capital-gains-tax-ratesWhilst the UK may be an island, the approach of other countries in relation to CGT cannot simply be ignored. A CGT rate of 45% would be one of the highest in the world and nearly every country in Europe could inadvertently become a more attractive place than the UK to crystallise gains. It is little wonder that a CGT rate rise does not appear in the Conservative and Labour manifestos and there are good reasons why they may be keen for that to remain the case.
Personally I think an increase to 25% (same as corporation tax), 28% (current investment fund rate) or at worst 30% with no exemption allowance amount is more likely.
I can live with that on any future BTC realised gains even though I still think it's disgusting theft by a bunch
of tyrannical MF'ers.
Any more CGT or the notion of aligning it to income tax (which means you pay those levels on your income and then also
on any gain from investments from the money left over that was initially already taxed!), for most rich people it would mean indeed 45%:
Well, I'd simply relocate.
OR I can simply not work, and make sure I only realise up to £50K profit every year, meaning you still only pay 20% (the current CGT rate for crypto and Income Tax rate up to that level).
45%, no chance. I'd rather be poorer at £50K (=£40K net) per year.
Poll
