CGT 'a greater concern' for 91% of advisers amid budget speculation

Introduction

The vast majority of financial advisers are increasingly concerned about the potential impact of capital gains tax (CGT) changes in the upcoming Budget. A recent survey by the Society of Later Life Advisers (SOLLA) found that 91% of advisers are worried about the potential impact of CGT changes on their clients.

What is CGT?

CGT is a tax on the profit you make when you sell an asset, such as a property or shares. Generally, CGT is only payable when you sell an asset for more than you paid for it. The rate of CGT you pay depends on your income tax bracket.

Why are advisers concerned about CGT changes?

There is speculation that the government may increase the rate of CGT in the upcoming Budget. This could have a significant impact on investors, particularly those who are planning to sell assets in the near future. Additionally, there are concerns that the government may change the rules around CGT exemptions, which could make it more difficult for investors to avoid paying CGT.

What can advisers do to help their clients?

Advisers can help their clients to understand the potential impact of CGT changes and to plan accordingly. They can also help their clients to identify ways to minimize their CGT liability, such as by using CGT exemptions and allowances.

What can investors do to minimize their CGT liability?

There are a number of things that investors can do to minimize their CGT liability, including:

• Using CGT exemptions and allowances
• Holding assets for a long time to benefit from indexation
• Selling assets in a tax-efficient manner

Conclusion

The potential impact of CGT changes in the upcoming Budget is a major concern for financial advisers. Advisers can help their clients to understand the potential impact of CGT changes and to plan accordingly. Investors can also take steps to minimize their CGT liability.