Chancellor has dismissed Budget speculation but fears are rising over a massive tax hike to fill a £25bn black hole in her plans

British finance minister Rachel Reeves is considering raising the rate of capital gains tax to as high as 39% in her Oct. 30 budget, the Guardian newspaper reported on Thursday. Finance ministry modelling being reviewed by Reeves and seen by the Guardian shows officials are testing a range of 33% to 39% for capital gains tax,

In June, the federal government increased the inclusion rate to two-thirds from one-half for gains over $250,000 earned by individuals. The broader increase, which also impacts corporations and has some exceptions, has drawn the ire of business groups and some economists.

As Kiplinger previously reported, the Washington capital gains tax imposes a 7% levy on profits exceeding $250,000 from the sale of assets, including stocks and bonds. In its first year, the tax generated approximately $786 million in revenue, with collections reaching over $400 million by mid-May 2024.

Wealth Enhancement Group examines the inner workings of the capital gains tax and shares strategies to avoid, reduce, or minimize it.

Rachel Reeves could raise capital gains tax on sales of second homes and businesses to as high as 39% at this months budget, reports have suggested. The Chancellor is said to be considering the hike from the current rate of between 20% and 28% for higher-rate taxpayers.

Rachel Reeves is considering a major hike to capital gains tax (CGT) as the Chancellor's plans are in "complete disarray", according to senior Whitehall officials. She is considering rates as high as 39 per cent in an attempt to find money to fund public services across the country.