UK's Healey rules out capital gains tax increase in budget, Times reports

Oct 19 (Reuters) - British finance minister John Healey has rejected calls to raise capital gains tax in his first budget on October 28, opting instead to prioritise economic growth and business investment, the Times reported on Monday.

• Healey ruled out the move after being warned that higher capital gains taxes could ultimately reduce government revenues if wealthy individuals left Britain or delayed selling assets, the Times said

• Britain's Treasury declined to comment, saying that “decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”

• The budget's main revenue-raising measure will be a levy on banks, with the proceeds used to fund a targeted, temporary package of cost-of-living support, the report said

• Healey is under pressure to raise billions of pounds in tax at his first budget to offset higher borrowing costs and fund Prime Minister Andy Burnham's plans for more defence spending and expanded social care.

• The Financial Times reported last week that Healey had ruled out raising capital gains tax to match income tax rates, though a smaller increase was reported to be under consideration

• Capital gains tax, currently charged at ​18% for basic-rate taxpayers and 24% for ​higher-rate taxpayers, raised £24 billion ($31.92 billion) in the 2025/26 tax year

($1 = 0.7517 pounds)

(Reporting by Carlos Méndez in Mexico City; Editing by Sanjeev Miglani)