CGT Archives - Personal Tax Accountant Services Uk - Tax Advisors Consultant London

November 7, 2022

Why are the rates of capital gains tax (CGT) so much lower than income tax rates?

It’s a historical thing. When CGT was introduced in April 1965 it came in at a flat 30%, which was significantly lower than tax on income at that time. Before 1962, when Financial Secretary Anthony Barber introduced a speculative gains tax, capital gains were not taxed at all.