Chancellor Rejects Calls to Raise Capital Gains Tax in Budget, Sources Say

The Chancellor has rejected calls to raise Capital Gains Tax in the upcoming Budget, according to sources. The decision removes a potential revenue-raising option as the government finalises Budget measures.

The move signals the government's fiscal stance and carries direct implications for investor tax planning and UK asset markets. With a CGT increase ruled out, the government will need to rely on other revenue sources or spending decisions to meet its fiscal objectives. For investors, the outcome provides near-term certainty on capital gains treatment, removing a potential drag on asset sales and portfolio reallocation decisions that might have been accelerated ahead of a tax rise.

With the Budget approaching, attention now turns to which revenue-raising measures the Chancellor will pursue instead, and whether the decision to forgo a CGT hike signals a broader reluctance to increase taxes on capital. Markets will watch for the full Budget package to assess the net fiscal impact and any offsetting changes to other taxes affecting investors and UK assets.

The source material available consists of the headline reporting the Chancellor's rejection of calls to raise Capital Gains Tax in the Budget, based on sources. No further details on the Chancellor's identity, the timing of the decision, or the specific options previously under consideration have been confirmed in the source provided.