A rise in CGT will harm Britain's economy, argues Dr Richard Wellings on The Daily Telegraph blog
It is, therefore, unsurprising that the Lib-Con realignment of the tax system involves increasing the personal allowance to benefit the relatively low paid, while hiking capital gains tax (CGT) – generally paid by the relatively wealthy – to rates of up to 50 per cent.
Raising the personal allowance for income tax is worthwhile. It will help improve work incentives by ameliorating the impact of withdrawn benefits and tax credits. Nevertheless, it makes no sense whatsoever to fund this measure by increasing taxes on the investment that actually creates jobs in the first place.
Read the full article on the Telegraph website.