
Should income from wealth, like dividends and capital gains, be taxed at the same rates as wages?
Dividends and capital gains are not taxed like wages: in 2026/27 dividends are taxed at 10.75%, 35.75% or 39.35%, and most capital gains at 18% or 24%. Wages face income tax of 20%, 40% or 45%, plus National Insurance. Chancellor John Healey's first Budget is due on 28 October 2026, and wealthy investors are reportedly bringing forward asset sales in case capital gains tax rises.
2 Opinions
investment income is not like wages. It’s not guaranteed, consistent or predictable. Trying to pretend that wealth is ‘wages for rich people’ misunderstands the role investors play in balancing risk and creating growth.
You need to have incentives to take risks.