Overview
- IG published an analysis on Monday, June 29, 2026, using HMRC figures that estimates raising CGT to income‑tax levels could cut receipts by up to £7.8 billion because investors would delay, avoid, or bring forward sales.
- The report breaks the effect down by tax band, saying most losses would come from top earners: roughly £4.6 billion from the additional rate band, about £3.2 billion from the higher rate band, and only around £10 million net from changes to the basic rate.
- IG and its spokesperson say higher CGT would discourage people from selling investments, which would reduce market liquidity and make retail investing less attractive at a time the UK is trying to boost household participation in markets.
- Supporters of Streeting’s idea argue any reform would include inflation‑indexing so taxpayers are not charged on nominal gains, while critics point to IG’s behavioural estimates to argue the change could be fiscally counterproductive.
- The debate has political stakes inside Labour because Streeting has promoted the idea and it links to wider proposals on inherited assets and tax reform, meaning ministers will face pressure to reconcile revenue goals with likely changes in taxpayer behaviour.