Chancellor John Healey has reportedly decided against increasing the capital gains tax (CGT) in the upcoming Budget, providing relief for those selling non-ISA investments, second homes, buy-to-let properties, cryptocurrencies, and other assets. The decision ends weeks of uncertainty that had unsettled investors across the UK.

While the move was welcomed by investors and industry experts, some critics argue that the prolonged speculation over potential tax hikes has already caused disruption in the market. Michael Healy, chief executive of IG Consumer, described the announcement as a positive development but cautioned that frequent tax changes in recent years have eroded investor confidence. According to IG’s analysis, the government has implemented 20 modifications to investment taxes since 2016, including a reduction in the annual CGT exemption from £11,300 to £3,000 and hikes in tax rates to 18% for basic-rate taxpayers and 24% for those in higher or additional rate brackets.

Healy emphasized that the tax landscape's volatility makes it difficult for investors to plan effectively, particularly given that some proposed measures are often leaked, debated, or reversed ahead of formal budget announcements. He called on the government to establish greater tax stability to encourage long-term investment.

Landlords, who have faced rising operational and regulatory costs in recent years, were particularly relieved by the Chancellor’s apparent decision not to align CGT rates with income tax rates—a move that industry representatives said would have significantly increased their tax liabilities. Chris Mason, chief operating officer at The Lettings Partnership, noted that such a shift could have raised the tax bill for higher-rate taxpayers selling an average property by nearly £12,000, and for additional-rate taxpayers by more than £15,000.

Joshua Raymond, UK managing director at trading platform XTB, criticized the prolonged period of uncertainty, suggesting that the government’s failure to provide clarity sooner had prompted some investors to liquidate assets prematurely. He argued that the Chancellor should have communicated the decision earlier to help stabilize the market.

Though Healey has ruled out increasing capital gains tax in this Budget, industry observers note that future chancellors may revisit the issue, underscoring the importance of clear and consistent fiscal policy for maintaining investor confidence.