Question to the HM Treasury:

To ask Her Majesty's Government what additional revenues could be raised by aligning Capital Gains Tax rates with Income Tax rates applied to earned income.

Last year, the Chancellor commissioned the Office of Tax Simplification (OTS) to carry out a review of Capital Gains Tax (CGT). Their first report contains revenue estimates of the static impact of aligning CGT rates with those of Income Tax and can be found on the gov.uk website.

It was estimated that aligning CGT with Income Tax rates could have theoretically raised £14 billion in 2018-19 but, in practice, significantly less would be raised due to behavioural responses. The Government will respond to the OTS report in due course.

The Government will continue to keep the tax system under constant review to ensure it is simple and efficient.