Earned income taxed more heavily than capital gains in UK, thinktank finds

Study says increasing capital gains tax rates to same as employment tax would raise £10bn extra

A graduate earning £35,000 a year pays almost double the average tax of someone with same income from rent on property, according to a study of inequality in the UK tax system.

The combined effect of income tax and national insurance payments forces people in employment to pay much higher rates of tax than those who benefit from lower capital gains tax (CGT) rates on property and shares income, according to the Intergenerational Foundation thinktank.

Continue reading...