Raise CGT to 20 and 40 per cent, says Tory Lord
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Conservative peer Lord Forsyth of Drumlean has penned a policy paper calling for capital gains tax rates to be increased in order to tackle the UK’s budget deficit.
In a paper for the Centre for Policy Studies co-written with Institute of Directors senior policy adviser Corin Taylor, Forsyth says that CGT should be raised to 20 per cent and 40 per cent from its current flat rate of 18 per cent.
Forsyth also argues that a ten-year taper rule should be introduced on CGT so that the tax is not payable on longer-term gains, in order to stimulate growth in the economy.
The paper also pushes for the 50p tax rate for high earners and the phase-out of the personal allowance for those earning above £100,000 not to be introduced next year.
He also says the main rate of corporation tax should be reduced to 20 per cent in a bid to attract overseas business to the UK and that stamp duty on share transactions should be abolished.
The paper estimates the cost of implementing the tax reforms at under £5bn.
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Readers' comments (1)
John Blackmore | 7 Dec 2009 5:09 pm
I'm confused. This report starts out by making suggestions to tackle the budget deficit and ends saying the cost would be under £5bn ?
Think I vote for a hung parliament.
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