IFA Magazine quotes Sophie Dworetzsky on the capital gains tax increases announced in the UK budget

UK chancellor Rachel Reeves has announced an immediate increase in capital gains tax in her Budget, affecting shares sales for investors, with the lower rate rising from 10 per cent to 18 per cent, and the higher rate from 20 per cent to 24 per cent. 

Sophie Dworetzsky, Private Client Partner, provides reactionary comment for IFA Magazine:

With the government announcing an increase in Capital Gains Tax, the concern is this sends a strong signal that the UK may be becoming less tax-friendly for long-term investors. This could discourage much-needed investment, especially at a time when the UK needs to remain competitive on the global stage. Capital may increasingly be redirected to more favourable jurisdictions.

"Entrepreneurs and business owners will now be rushing to assess their exit strategies, and we can expect a heightened focus on tax-efficient planning going forward. While business asset disposal relief remains, it would be helpful see more expansive measures tailored for investors and entrepreneurs, such as a return to taper relief, we’re also likely to see a reduction in long-term investment.

Read the full piece in IFA Magazine here.