PM’s tax bill would have been higher had Tories not cut top capital gains rate
Rishi Sunak has saved more than £300,000 in tax thanks to a cut he voted for in 2016, according to an analysis of his tax records.in tax over the past three years, most of which was accrued on the gains he has made on his US-based investment portfolio. But that figure would have been £308,167 higher had the top rate of capital gains tax not been cut by the Conservative government in 2016.
The figures highlight the disparities between Britain’s income tax rates and its relatively low rates of CGT. The prime minister’s overall tax rate for the last three years was 22%, roughly equivalent to what a nurse would pay in income tax.Policy Associates, said: “This is about whether it is fair for people holding investments to pay about half the rate of people getting income through their salary. It is hard to see how it can be.
Britain’s CGT rates were aligned with income tax rates until 1998, when Gordon Brown slashed them as chancellor. His successor Alistair Darling put them back up 10 years later, however, introducing a top rate of 28%.In 2016, the Tory government cut that top rate back down to 20%, arguing it would encourage business investment.
Sunak himself incurred the capital gains tax on investments made in the US, Downing Street has confirmed. A No 10 source said: “The tax return shows that a considerable amount of capital gains tax is being paid.”
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