The tragedy of the coming Budget is that it could have been a great reforming Budget. Instead, it now looks like being an extremely messy one, with the Chancellor buffeted by political winds into coming up with tax changes which are bizarre, punitive and which end up pleasing no-one. The latest symptom of this is the suggestion, reported in the Times today, that Rachel Reeves may increase capital gains tax on shares but not on property.
Why should you pay more tax when you sell your shares than when you sell an investment property? Reeves was right the first time, when she hinted that she was going to equalise capital gains tax with income tax.
The electorate tends to take a dismal view of politicians who row back on their own promises
Why can’t we have a simple, flat tax system which treats all kinds of income and capital gains in the same way? It would suit accountants, who thrive on a Byzantine tax system, but it would make life a lot simpler for the rest of us.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in