Latest updates: Labour leader to launch campaign for local elections with tax pledge that Conservatives have criticised as worthless
After Rishi Sunak published his tax returns, Angela Rayner, Labour’s deputy leader, posted a message on Twitter saying that he was paying “a far lower tax rate than working people” because most of the money he makes comes in the form of capital gains, and capital gains tax (CGT) is lower than income tax.
Conservatives claimed this showed Labour is planning to raise capital gains tax after the election. CGT was aligned to income tax until Gordon Brown cut it in 1998. His successor, Alistair Darling, put it back up, introducing a top rate of 28%, but in 2016 the Tories reduced that to 20% (for gains other than those related to residential property, where a 28% rate applies). The 2016 cut is estimated to have saved Rishi Sunak more than £300,000.
There are people who have built up their own businesses who maybe at retirement want to sell that business.
They may not have had huge income through their life if they’ve reinvested in their business, but this is their retirement pot of money.
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