Labour increases capital gains tax in bid to raise £2.5bn

Chancellor Rachel Reeves has announced an increase in capital gains tax in a move designed to bring in £2.5 billion over the coming years for public spending (Justin Tallis/PA) - (PA Wire)

Labour is increasing capital gains tax (CGT), in a move designed to bring in £2.5 billion over the coming years for public spending but which attracted a mixed response from businesses.

Chancellor Rachel Reeves said she will raise the lower rate of CGT to 18%, up from 10%, while the higher rate will increase to 24% from 20% previously.