John Healey Rules Out UK Capital Gains Tax Increase in Budget

What changed

Chancellor John Healey has ruled out raising Capital Gains Tax in next week’s UK Budget. The tax applies to profits from selling assets such as shares and properties that are not primary residences.

The decision rejects calls from Labour figures, including Wes Streeting and Louise Haigh, to bring capital-gains rates closer to income-tax rates. Healey said higher CGT could prompt wealthy people to leave the UK or delay selling assets.

Why it matters

For investors, the immediate consequence is stability: the tax treatment of existing gains will not change in this Budget. That may preserve the incentive to sell assets rather than wait for a higher rate, although the government has not quantified the fiscal cost of leaving CGT unchanged.

The choice also draws a line between taxing investment gains and introducing a broader wealth tax. Healey has ruled out the former increase, while the Budget’s other tax and spending decisions remain unknown.

The political argument is now less about whether CGT rises next week and more about what Labour’s broader approach to wealth creation will be. Healey has said he wants policies that support confidence, investment and profit; rejecting the increase is a clear signal that avoiding an investor exodus currently matters more than equalising capital-gains and income-tax rates.