Story perspectives

Healey Won't Raise Capital Gains Tax in First Budget

By Drooid · Oct 20, 2026, 6:31 AM UTC · How we work

Summary

Story summary

Chancellor John Healey announced he will not raise capital gains tax in his first budget on 28 October 2026.
Healey warned higher CGT could drive wealthy individuals out of Britain, prompting a focus on a bank levy.
The budget’s main revenue measure is a bank levy expected to raise about £2 billion.
Lloyds and NatWest shares fell over 2% after market expectations of the bank tax increase.

History

Historical Context

After the 2008 financial crisis prompted a massive UK bank rescue and a 2009 temporary bonus tax, Chancellor Alistair Darling introduced a 0.5% bank levy in 2011, projected to raise about £1.5 billion a year. The levy, part of a broader OECD trend, set a precedent that Finance Minister Jeremy Healey cited in 2026 when he rejected a capital-gains-tax rise and kept a £2 billion bank levy.

1 of 2

Story summary

Chancellor John Healey announced he will not raise capital gains tax in his first budget on 28 October 2026.
Healey warned higher CGT could drive wealthy individuals out of Britain, prompting a focus on a bank levy.
The budget’s main revenue measure is a bank levy expected to raise about £2 billion.
Lloyds and NatWest shares fell over 2% after market expectations of the bank tax increase.

1 / 2