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The Budget as it relates to Wales

The increase in capital gains tax is necessary to reduce the avoidance of it, which was caused by the very wide gap that was established by the previous Government between 18% capital gains tax and income tax. The 18% rate for basic rate taxpayers affects those on low incomes with small gains. The advice suggests that the 28% rate will maximise revenue, which implies that it is also the rate that will have the maximum effect on reducing tax avoidance. In Wales, as well as elsewhere, the rate applies only to non-business assets, and we have increased the exempt amount from £2 million to £5 million for business owners and people with substantial investments in business. Those measures will be of significant benefit to the productive side of the economy.