What does capital gains tax rise mean?
Capital gains tax is the tax you pay on the difference between the purchase and the sale price of certain assets. Because you have already paid either income or inheritance tax on the asset, it is highly controversial and many countries have no capital gains tax. In the UK right now there is no tax when you sell your main house but (for instance) you pay it if you sell a buy for let or shares in a company at a profit. Right now capital gains are taxed at 18% of the gain. The discussion is about whether this percentage should be increased to be at the same percentage as income tax thus not distinguishing between income and capital gains. This discussion started because a business owner can often choose to take his share of the profits of the business in either way. The climb down is that the government realises that an increase in the capital gains tax will hit far more than just a few business owners and that the people hit hardest will be savers ready for retirement. Also, you collect
