The Institute for Fiscal Studies has urged the UK government to overhaul the capital gains tax regime, arguing “the whole design of CGT is flawed”.
According to the IFS Capital gains tax reform report, Downing Street should take steps to make the overall tax regime "fairer" and "less harmful to economic growth and well-being". The IFS said that CGT rates are "unfair and create a range of undesirable distortions", with charges varying across different sets of assets and being lower than income tax rates. "The design of the tax base is flawed," the report read. "Ultimately, by discouraging saving, investment and risk-taking and distorting who holds assets and for how long, it reduces productivity and well-being." Reeves urged to...
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