Over half of millionaires like me want to equalise capital gains with income: Chancellor, don’t settle for 39 percent

11 October 2024, 14:51

Rumours are circling that the Chancellor could raise capital gains to 39 percent and as a wealthy investor, who would be affected, I think we need to go further.

Why? At the moment taxes on investment income are embarrassingly much lower than income tax. Meaning right now, a hedge fund owner likely pays a much lower effective tax rate than a teacher. This is deeply unfair and ultimately harms our economy.

We desperately need investment for our struggling education system and underfunded NHS - to name a few - and equalising capital gains with income tax would do just that, raising a further £14 billion a year - according to evidence from the country’s leading tax experts.

And I am not alone; other millionaires feel the same way. Patriotic Millionaires UK, an organisation I support, polled UK millionaires earlier this year and found that even the richest in this country support such a change - with 52 percent of millionaires supporting it and only 19 percent opposing.

This support is not only about fairness but about what’s good for business. As an investor in this country, improved infrastructure and national investment would make me more disposed to invest further. And if equalising capital gains with income tax is a way to generate the kind of revenue needed for that investment, then we should be getting on with the job.

As a millionaire who has long puzzled over why my effective tax rate is lower than the ordinary working person’s I have to ask, what on earth is stopping the Chancellor from equalising taxes on wealth and work right now?

Under the changes proposed in today’s report, 97% of people won't pay any capital gains tax at all.  It's a pro-growth proposal, as it improves investment incentives. In short, the idea that the effective tax rate I pay on my wealth is less than most hard-working employees simply doesn’t make sense.

No more prevaricating; no more worrying about what a handful of politicised reporters or disgruntled wealth managers might say - it is time to invest in Britain by taxing those with the most wealth. Chancellor - don’t settle for 39 percent. Equalise capital gains with income and create a better Britain for everyone.

________________

Tim Stumpff is an Impact Investor and member of Patriotic Millionaires UK.

LBC Views provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email views@lbc.co.uk