Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has he made of the potential (a) distributional effect and (b) projected receipts of equalising capital gains tax rates with income tax rates.

Last year, the Chancellor commissioned the Office of Tax Simplification (OTS) to carry out a review of Capital Gains Tax (CGT). The OTS considered a range of issues and recommended aligning the rates charged on capital gains with those on income. The report contains revenue estimates on the impact of their recommendations. The Government will respond to the OTS report in due course.

Any changes to the tax system will balance the need to raise revenue with the principles of fairness and market efficiency. The Government’s priority is supporting jobs and the economic recovery from the pandemic.