Liberal Democrats unveil plans to reverse corporation and capital gains tax cuts

 
Helen Cahill
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The Liberal Democrats unveiled their manifesto today (Source: Getty)

The Liberal Democrats today proposed to reverse cuts to corporation tax and capital gains tax that have gone ahead under the Conservative party.

The Conservatives plan to reduce corporation tax to 17 per cent by 2020, and, in 2016, the party cut the basic rate of capital gains tax from 18 per cent to 10 per cent and the higher rate from 28 per cent to 20 per cent.

However, in their manifesto, the Liberal Democrats said they wanted to row back on cuts to "ensure those with the highest incomes and wealth are making a fair contribution".

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Danny Cox, chartered financial planner at Hargreaves Lansdown, said: "We should be encouraging investment, not re-erecting tax barriers. Investing is good for people and the economy.

"A reversal of capital gains tax cuts makes no fiscal sense as the amount of capital gains tax collected goes up when the rate of capital gains tax paid goes down as more people are inclined to realise gains."

The Institute for Fiscal Studies said the planned U-turn on corporation tax would "ultimately affect the incomes of UK households".

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