Rishi Sunak has launched a tax review that could leave Britain’s wealthiest citizens out of pocket as the government scrambles to keep the economy afloat during the coronavirus crisis.
Tory MPs were reportedly caught off guard by the chancellor’s decision to order a wide-ranging examination of the capital gains tax (CGT), which “reaps billions of pounds for the Exchequer each year”, The Guardian says.
What is capital gains tax?
CGT is the main tax “levied on the profit made when an asset that has increased in value is sold”, the Financial Times explains.
This tax is payable on investments held outside a tax wrapper such as an Isa; property in the UK that is not the owner’s main home; overseas property, property that is inherited; some businesses; and valuable personal possessions (such as jewellery, antiques, paintings, stamps and coins) that are sold for more than £6,000.