London— Entrepreneurs may be compelled to leave the United Kingdom if the government proceeds with its contentious proposals to increase the capital gains tax on share sales.
Finance Minister Rachel Reeves is reportedly considering raising capital gains tax (CGT), which is levied on the profit investors receive when they sell their investments.
The tax might increase to 39%. Prime Minister Keir Starmer of the United Kingdom told Bloomberg last week that such rumours were “wide of the mark.”
Reeves is anticipated to unveil significant budgetary reforms in her budget on October 30 in an effort to bridge a multi-billion dollar financing deficit in the public coffers.
The government also plans to raise the capital gains tax on shares and other assets by “several percentage points.” This means that anyone who sells their shares in an acquisition, IPO, or secondary share sale will have to pay taxes on any value increase.
Source (CNBC)
