Clegg: we’ll hike capital gains tax

NICK Clegg yesterday said a Liberal Democrat government would introduce a new 50p top rate of capital gains tax, as he unveiled a manifesto that promised to clobber the City.

The Lib Dem leader said capital gains tax would be brought in line with income tax, with two rates: 20 per cent and 50 per cent.

He also said he would slash the annual capital gains tax allowance from £10,000 to £1,000, raising £1.9bn to help fund the party’s promise to bring those earning less than £10,000 out of income tax altogether.

With polls pointing to a hung parliament, the City is being forced to take the Lib Dems’ economic policies more seriously.

Elsewhere, Clegg said he would limit tax relief on pension contributions to the basic rate, hitting 3m taxpayers who pay the higher tax rate.

Other plans include a mandatory pay audit for all firms that are listed in the UK, forcing them to publish the number of people they employ that earn over £200,000. British-incorporated banks would have to publish the name of every employee earning £200,000 or more.