Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of increasing the tax on (a) capital gains and (b) dividends to the same rate as income tax.

The Government is committed to ensuring that the UK tax system encourages investment whilst also taxing income from capital sources like dividends and Capital Gains fairly.

As set out in the Government’s response to the Office of Tax Simplification's report on Capital Gains Tax (CGT) on 30 November 2021, substantial reforms to CGT rates and allowances would involve a number of wider policy trade-offs and so careful thought must be given to the impact that they would have on taxpayers, as well as any additional administrative burden on HMRC.

The Government keep all aspects of the tax system under review to ensure it is simple and efficient.