Source link : https://www.mondialnews.com/2026/06/29/new-research-shows-introducing-cgt-could-cost-the-uk-8-billion/
New research reveals that the proposed Capital Gains Tax (CGT) reforms backed by Labour’s Wes Streeting could impose a hefty £8 billion cost on the UK economy, sparking fresh debate within insurance and financial sectors. The study, highlighted by Insurance Business, examines the potential financial impact of tougher CGT rules, underscoring concerns about investment climate and market stability as policymakers weigh changes ahead.
Impact of Streeting CGT Changes on UK Economy and Tax Revenues
The proposed changes to Capital Gains Tax (CGT) under the Streeting plan are forecasted to have profound implications on the UK’s economic landscape. Analysts warn that an increase in CGT rates could potentially deter investment, particularly within the insurance and financial sectors, where capital gains play a significant role in asset growth and portfolio management. Reduced investor appetite may lead to a slowdown in market activity, stifling innovation and entrepreneurship at a critical juncture for post-pandemic recovery efforts. Additionally, businesses could face heightened costs when divesting assets, ultimately impacting profitability and limiting opportunities for expansion.
From a fiscal perspective, the anticipated £8 billion shortfall in tax revenue raises questions about the long-term sustainability of expected government income streams. Key concerns include:
- Volatility in revenue collection: The higher CGT could prompt taxpayers to defer…
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Author : Ava Thompson
Publish date : 2026-06-29 14:55:00
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