John Healey has ditched Budget plans for a ‘wealth tax’ on investments after officials warned it would backfire.
The Chancellor has been examining Labour demands to raise rates of capital gains tax (CGT) to the same level as income tax.
The move would have seen CGT for top-rate taxpayers almost double from 24 per cent to 45 per cent.
Supporters of the idea, including Cabinet ministers and union chiefs, claimed the plan was a painless way to raise billions by soaking the rich.
Defence Secretary Wes Streeting described the idea as a ‘wealth tax that works’.
But Treasury officials warned Mr Healey that a sharp
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