Wealth bosses caution CGT increase could impact equity investment

Wealth bosses: Wealth bosses refers collectively to senior leaders and representatives of UK wealth-management firms and advisory businesses, rather than a single named organization or individual. They are relevant because wealth advisers have warned that a possible increase in capital gains tax could influence portfolio decisions and reduce incentives for investment in equities, amid expectations of further tax changes in the UK Budget. Tax policy: UK wealth advisers have been preparing clients for the possibility of a further or stepped increase in capital gains tax in the upcoming Budget. Revenue debate: Recent policy analysis has highlighted disagreement over how much additional revenue a higher capital gains tax rate would raise, because increased avoidance and changes in investor behavior could offset some receipts. Investment impact: Advisers have warned that higher capital gains tax could complicate portfolio planning and discourage investment in shares, particularly as existing tax-free allowances have already been reduced.