Coalition plans capital gains tax increase By Jean Eaglesham, Chief Political Correspondent Published: May 12 2010 00:05 | Last updated: May 12 2010 00:05 Capital gains tax will be increased significantly for non-business assets, as part of a radical package of tax reforms agreed by the new Conservative-Liberal Democrat coalition government. The 18 per cent rate of tax on gains on non-business assets will be increased to close to the 40 per cent higher rate of income tax, meeting a central plank of Lib Dem policy, according to Tory insiders. The revenue from the tax rise will be used to help fund a significant increase in the income tax threshold to help lower-paid people, taking effect in April. The new government, with George Osborne as chancellor, will also agree to subsequent real terms increases in this threshold, as part of a longer term goal of meeting the Â£17bn Lib Dem policy of raising the income tax exemption to Â£10,000. http://www.ft.com/cms/s/0/066a8a34-5...44feab49a.html LOLLLL, this is a conservative govt. Hello Europe.