UK Chancellor rejects capital gains tax increase in budget

UK Chancellor John Healey has decided not to raise capital gains tax in his October 2026 budget. Some Labour MPs and two cabinet ministers, Wes Streeting and Louise Haigh, had pushed for an increase. Healey rejected their calls.

Capital gains tax is paid on profits when people sell things like shares or property that is not their main home. The tax currently brings in around £24 billion a year. Rates are 18% for lower earners and 24% for higher earners.

Healey was warned that a higher rate could actually reduce revenue, because wealthy people might leave the country or wait before selling assets. Lord O'Neill of Gately also said an increase would give businesses the wrong message. Instead, the government plans to raise taxes on bank profits.