Chancellor urged to make CGT and IHT changes to address £22bn fiscal hole

Think tank the Resolution Foundation made the recommendations

Linus Uhlig
clock • 3 min read

The Resolution Foundation has urged chancellor Rachel Reeves to implement a series of reforms to inheritance tax (IHT), capital gains tax (CGT) and National Insurance on employers’ pension contributions, as she works to address the £22bn fiscal deficit in the upcoming Autumn Budget.

In its Revenue and reform report released today (10 September), the think tank said its three proposed reforms could raise more than £20bn while still meeting the ‘triple tax test' of increasing tax system efficiency, not breaching manifesto commitments and allowing those with the "broadest shoulders" to take the most significant hit.  CGT in particular "should be a key focus" for the chancellor, according to the Resolution Foundation, by aligning marginal CGT rates for shares with dividend tax rates, as well as taxing capital gains from property like wages.  "In addition, there shoul...

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