Late last Friday afternoon, the prime minister published details relating to his tax return entries for the year to 5 April 2023. The timing of the release may have helped in limiting the number of associated headlines but if there was a spotlight, it wasn’t so much on the prime minister that it fell but rather on capital gains tax (CGT) itself.

Rishi Sunak had a significant amount of capital gains during the 2022-23 tax year, from an investment portfolio held in a ‘blind management arrangement’.

As is the case for capital gains generally for UK tax residents, these are subject to tax at a lower rate than income. Quite reasonably, that will lead some to ask the question why and whether this is fair.