Healey rules out raising capital gains tax in Budget

UK Chancellor John Healey has ruled out raising capital gains tax in his first Budget.

The tax applies to profits made when people sell assets that have risen in value, such as shares or second homes.

Some Labour figures had called for a higher rate, closer to income tax, which is generally charged at a higher rate.

Healey says the tax will not be increased, after warnings that wealthy people might leave the UK or delay selling assets, reducing government revenue.

The decision matters because the government is weighing how to raise money while supporting economic growth.

The Budget is due on October 28, and Conservative leader Kemi Badenoch is expected to call for lower spending and borrowing.