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In the UK, Capital Gains Tax (CGT) is generally not the same as Income Tax. Why not?

(135 Posts)
PoliticsNerd Sat 02-Aug-25 11:14:06

So you go to work and earn income or passively earn income and the rates of tax for CGT are generally lower than Income Tax rates for higher income brackets and about the same for lower incomes.

Rachel Reeves has raised the levels a little but has not equalised them. Why not? Both are income. Why should income you work for be taxed higher than income that you don't actively work for? And this is in a country where those whose main income is passive are draining the possible areas of investments (assets) away from those on middle incomes and from government having already taken most possible assets from the poor.

Surely the time has come when income tax and CGT should be equalised?

fancythat Fri 08-Aug-25 19:45:15

With respect, I was rather hoping it wouldnt be you who replied! grin
You and I never agree on anything, money related.

PoliticsNerd Sat 09-Aug-25 08:27:53

fancythat

growstuff

GG13 I don't think anybody has suggested that one's own home should be liable to CGT.

It feels like so much tax in this country, and the Labour government keeping finding "black holes", that iI personally wouldnt rule anything out. Anything at all.

Whatever it "feels" like probable has something to do with where you get your news.

It isn't a fact - or perhaps you can point to statistics that say we are, as a country, anything other than average with comparable countries?

fancythat Sat 09-Aug-25 10:13:53

^Whatever it "feels" like probable has something to do with where you get your news.
^

Um,. no!

It feels like, according to our pockets.

MaizieD Sat 09-Aug-25 10:48:43

It feels like, according to our pockets.

I suspect that that might have more to do with rising inflation than 'high' taxation.

fancythat Sat 09-Aug-25 11:49:51

It has something to do with the time of life, me and mine are in, as well.

If I was just a pensioner, with maybe a small private pension, everything is relatively stable, finances wise.
As it is, quite a number of people I know are not in that position.
Finances taking a hit all over the place.

MaizieD Sat 09-Aug-25 14:20:17

As the only tax increase for wage earners this government has effected has been the increase in employers' national insurance contributions inflation is the only thing that can be causing finances 'taking a hit',

You cannot blame something that hasn't happened.

fancythat Sat 09-Aug-25 15:22:46

I am not just talking about "wage earners".

There are all sorts of other peoples and groups who pay taxes.

But you will know me by now, I am not going to keep on and on about something.

MaizieD Sat 09-Aug-25 18:03:36

But you will know me by now,

I do indeed. Not willing to back up your assertions with evidence.

David49 Sun 10-Aug-25 09:22:35

fancythat

I am not just talking about "wage earners".

There are all sorts of other peoples and groups who pay taxes.

But you will know me by now, I am not going to keep on and on about something.

A# we are now considering “black holes” of £25 or even £50bn needed to balance the budget, there have got to be changes that happen quickly so we can forget IHT or CGT.
The quick way is to increase, VAT or Income Tax, those that earn most can afford to pay most, maybe Reeves will renege on election promises, they have U turned on everything else.