Capital gains tax rises under Labour would disproportionately hit older men selling their businesses, analysis shows.
Nearly three quarters of the people who benefit from capital gains in Britain are aged over 50, according to analysis of tax returns by researchers at the University of Warwick and the London School of Economics.
Of all taxable gains covered by the levy, 68pc come from the sale or liquidation of businesses.
Any capital gains tax rise would also be a disproportionate blow to men, who receive 74pc of the UK’s capital gains by value.
The analysis comes amid speculation that Labour will raise capital gains tax to fund its plans.
The party has ruled out raising income tax, National Insurance, VAT and corporation tax, which combined make up around three quarters of the Treasury’s tax take, but has not ruled out an increase in capital gains.
Arun Advani, associate professor at the University of Warwick, warned that increasing the levy could make Britain’s economy less dynamic by discouraging business owners from selling.
He said: “The vast majority of gains are coming from private business assets. The downside of raising rates is that you encourage people to either leave and liquidate or hold until death, even when they don’t really want the business anymore, to get the gains wiped out.
“By encouraging people to hold until death, even when they might want to sell, raising rates would be bad for business dynamism.”
Capital gains are profits made on the sale of most personal assets, such as shares or property, that are worth £6,000 or more.
