HMRC has delayed publishing a report on the impact of higher capital gains tax (CGT) amid speculation that Labour Party Prime Minister-in-waiting Andy Burnham will raise rates. The tax authority postponed the release of its latest analysis on Tuesday, according to The Telegraph.
Burnham's Position on Tax Changes
Mr Burnham himself has not called for capital gains tax to be aligned with income tax. That specific proposal, which would take the top rate from 24 per cent to 45 per cent, is backed by his allies, though. Mr Burnham is said to be examining more targeted changes, such as revisiting the rates charged on share sales, second homes and other assets, potentially to help fund the removal of green levies from household bills.
Previous HMRC Analysis Shows Revenue Loss
The most recent version of the annual report, published in June 2025, found that increasing the higher rate of CGT by 10 percentage points would bring in £540m less for the Treasury than leaving rates unchanged. HMRC's 2025 analysis also found a CGT increase of five percentage points to the higher rate would have a detrimental impact. In the 2027-28 financial year, it would mean a shortfall of £235m in collected revenues, rising to £870m the following year.
Expert Reaction to Delay
Tim Stovold, head of tax at the advisory and audit firm Moore Kingston Smith, said: “HMRC should have published its report showing the direct effect of illustrative tax changes today. If HMRC unexpectedly and fundamentally changes its established view on the impact of increasing the rates of CGT, that will no doubt further encourage those seeking to influence tax policy in an Andy Burnham-led government to argue for those rates moving closer to income tax rates.”
HMRC Statement
An HMRC spokesman said: “We have postponed the publication to allow for the completion of a review of some of the key assumptions underpinning the estimates in the bulletin. We’re committed to providing accurate information, so it is important that we complete this review. We’ll provide an update on the publication date in due course.”
