McDonnell responds to IFS report on low capital gains tax rates
John McDonnell MP, Labour’s Shadow Chancellor, responding to the Institute for Fiscal Studies’ report finding low capital gains tax rates cost the Exchequer without boosting investment, said:
“The Conservatives’ tax system seems to have been designed to benefit the rich, and the IFS has made clear that it isn’t leading to increased investment either.
“Labour opposed the Conservatives’ cuts to capital gains tax: in government we will create a progressive tax system that does not hand out billions to the wealthiest in society.”
Notes to Editors:
- The Institute for Fiscal Studies report published its report today (Monday) https://www.ifs.org.uk/publications/14511
- Non-property capital gains tax is currently set at 10 per cent for basic-rate taxpayers and 20 per cent for higher- and additional-rate taxpayers, compared with income tax rates – excluding National Insurance contributions – of 20 per cent and 40/45 per cent respectively.
- The authors note that “We do not find any evidence that tax-motivated retention of profits translates into more investment in business capital”