Pound falls with the UK floating a capital gains hike

The pound is down a third of a cent today as the US dollar broadly strengthens following a hotter CPI report. The pair is trading at 1.3038.

The pound is also slightly underperforming the euro and part of that might be a new report in The Guardian that says the new government is considering raising the capital gains tax as high as 39%.

The nation is facing a hole in its budget and trying to sort it out and considering capital gains taxes in the range of 33-39%, with hikes in inheritance tax also on the table. Current rates are 24%-28% and the tax brings in about GBP15 billion annually. The models show only a modest improvement at higher rates because of potential off-shoring and evasion.

This article was written by Adam Button at www.forexlive.com.