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The Guardian - UK
The Guardian - UK
Business
Heather Stewart Economics editor

Capital gains tax: how it works, and the pros and cons of another rise

capital gains John Healey CGT Rachel Reeves Andy Burnham Wes Streeting United Kingdom HMRC Income Tax OBR
HMRC capital gains tax forms lie on a table with a pen, glasses, and banknotes
Recent data from HMRC showed revenue from CGT was up 89% in 2024-25 after changes in tax policy. Photograph: Mykhailo Polenok/Alamy

Capital gains tax (CGT) has been widely cited as a possible revenue-raiser as the chancellor, John Healey, prepares to deliver a tough budget next month. How does it work, and what are the pros and cons of raising it further?

What is CGT?

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