10 hrs ago
UK Finance Minister Weighs Wealth Tax Options for October Budget
John Healey is preparing the United Kingdom’s budget for October 28.
The government needs more money because borrowing costs have risen.
It also wants to spend more on social care and defence.
One idea is to tax profits from selling investments more heavily.
Another idea is to change taxes on homes and property purchases.
Campaigners want very wealthy people to pay a yearly tax on large fortunes.
Supporters say these plans could raise billions of pounds.
Critics say wealthy people might avoid the taxes or leave the country, making them harder to collect.
John Healey is under pressure to raise billions in October’s budget.
The government wants to offset higher borrowing costs and fund social care and defence plans.
Possible measures include higher capital gains tax, property taxes, and an annual wealth levy.
A comprehensive capital gains tax reform could raise an estimated £11 billion annually.
Critics warn wealth taxes could encourage avoidance, emigration, and costly administrative challenges.
- Who
- British finance minister John Healey, with proposals discussed by Prime Minister Andy Burnham, campaigners, and tax-policy groups.
- What
- The government is considering tax increases on capital gains, property, and wealth for the October budget.
- Where
- The United Kingdom.
- When
- The budget is scheduled for October 28; the article is dated September 7.
- Why
- To offset higher borrowing costs and help fund expanded social care and defence spending.
Tax-Raising Advocates
Tax-Raising Critics
Capital gains tax rates
Tax-Raising Advocates
Supporters propose aligning capital gains tax rates with income tax rates; one comprehensive reform estimate says this could raise £11 billion annually.
Tax-Raising Critics
Britain’s tax office estimated that raising the higher capital gains rate by 10 percentage points could reduce revenue by up to £3.6 billion annually because of increased avoidance.
Annual wealth tax
Tax-Raising Advocates
Oxfam and Tax Justice UK support a 2% annual levy on assets above £10 million and estimate it could raise £24 billion a year.
Tax-Raising Critics
The Institute for Fiscal Studies says wealth taxes are difficult to administer, especially when valuing private businesses, and could encourage exemptions, avoidance, or emigration.
Property taxation
Tax-Raising Advocates
Proposals from tax-policy researchers and campaigners would replace or merge council tax and stamp duty with a tax based on property values, potentially making taxation fairer.
Tax-Raising Critics
Andy Burnham has ruled out scrapping stamp duty or council tax in October’s budget, while updated property valuations could sharply increase bills in London and southern England.
Key facts
- Budget date
- October 28
- 2025/26 total tax raised
- £1.1 trillion
- Capital gains tax revenue
- £24 billion in 2025/26
- Potential capital gains reform
- Estimated additional revenue of £11 billion a year
- Proposed wealth levy
- A 2% annual tax on assets above £10 million
- Estimated wealth-tax revenue
- Campaigners say the levy could raise £24 billion annually
- Existing property-tax revenue
- Council tax raises £54 billion and stamp duty raises £17 billion annually
Sources
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