Another leading Conservative MP has spoken out about the planned rise in capital gains tax.
David Davis, the former shadow home secretary and MP for Haltemprice and Howden, said that the rise risked “punishing the virtuous” and “destroying aspiration”. He also questioned whether the proposed move would raise any money.
The new coalition government is thought to be considering raising the current 18% levy on such assets as shares and second homes to 40 or even 50%. Mr Davis said that the hardest hit by the rise would be those people nearing retirement who were selling off assets they had saved for years on.
There will be an official announcement on changes to capital gains tax in the emergency budget next month.
Are these just the rich people protesting because a tax loophole is being closed to them, or will it hurt ordinary people more who are trying to do the right thing and investing for their futures?
Either way it will prove unpopular but if it helps the UK to climb out of the current economic crisis it will surely be for a collective good.