Tom's Tips 1:Align Capital Gains with Income Tax

Smart ideas for the new government

Aligning CGT with income tax could generate substantial additional revenue for the government, estimated at around £12 billion per year, according to Richard Murphy of Funding the Future. In the UK, approximately 394,000 taxpayers paid Capital Gains Tax (CGT) in the 2021/22 tax year. This figure represents less than 1% of the total number of income taxpayers. Despite this relatively small number, CGT revenue is significant, amounting to £16.7 billion for that year. Notably, a large proportion of this tax—45% of the total CGT collected—was paid by less than 4,000 individuals who each made gains of £5 million or more (Source: AccountingWeb, LSE)

This change effects only 400,000 people who are still better off, out of 32 million income tax payers

Its another no brainer!