On Monday, British tech lobby group Startup Coalition warned in a blog post that there was a risk Reeves' tax plans could result in a tech "brain drain.".
(Photo by Oli Scarff/Getty Images)LONDON — Britain's Labour government on Wednesday announced plans to raise the rate of capital gains tax on share sales, news that offered some relief for technology entrepreneurs who feared a more intense tax raid on the wealthy.
Finance Minister Rachel Reeves on Wednesday hiked capital gains tax (CGT) — a levy on the profit investors make from the sale of an investment — as part of her far-reaching budget announcement.
The lower capital gains tax rate will be increased to 18% from 10%, while the higher rate will climb to 24% from 20%, Reeves said.
She stressed that this still represented a "significant gap compared to the higher rate of capital gains tax."
Persons:
Reeves, Oli Scarff, Rachel Reeves, quashing
Organizations:
Startup Coalition, Labour, Wednesday, Finance, National Insurance
Locations:
British, BADR