UK City Executives Warn Burnham Against CGT Hike to 45%

Senior financiers warned UK Prime Minister Andy Burnham that raising capital gains tax from 24% to as high as 45% would damage growth and accelerate the exodus of wealthy entrepreneurs from Britain. The proposal, submitted in a Budget document by Labour donor Dale Vince, claims equalizing CGT with income tax would raise £14 billion to help fund a £20 billion handout for low earners. Burnham is reviewing the measure ahead of next month's Budget. Hargreaves Lansdown CEO Matt Benchener cited HMRC estimates that a 10% CGT increase could cost the Treasury £3.5 billion annually, casting "serious doubt" on the £14 billion projection. Peel Hunt CEO Steven Fine said any hike "would send exactly the wrong signal to entrepreneurs and investors." CGT raised over £20 billion last year, up from £13.1 billion two years prior. Former chancellor Rachel Reeves already raised the main rate to 24% from 20%. The news follows Christopher Rokos, Britain's third-highest taxpayer, switching residency to Greece this month.