Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
Andy Burnham Suggests Aligning Capital Gains Tax with Income Tax
Andy Burnham has indicated that he would like to see Capital Gains Tax (CGT) increased to the same rate as Income Tax. According to a report by The Negotiator, this could mean a rise in CGT from 24% to 45%.
The article notes that arguments for and against such a change were discussed extensively last year. It highlights concerns that increasing CGT to this level could be unfair to investors and business owners, and may not result in significant additional tax revenue.
Potential Impact on Letting Agents and Business Owners
The report discusses the potential impact on letting agency managers considering starting their own businesses. It points out that business owners often take on significant financial risks, such as providing personal guarantees for loans and leases. The article suggests that if CGT rates do not reflect these risks, fewer individuals may be willing to start their own letting agencies.
The article also notes that a large portion of CGT liability is due to inflation, and suggests that inflation should be considered when calculating gains for tax purposes.
Timing of Capital Gains Realisation
The report highlights that business owners and investors can often choose when to realise their capital gains. It states that many business owners completed sales before the last budget in November 2025 and before the end of the tax year in April 2026, in anticipation of possible tax changes. The article argues that further increases in CGT could lead to fewer gains being realised, potentially reducing tax revenue.
Source: The Negotiator