Investors ditched nearly £1 billion from funds focused on UK stocks last month as they tried to book profits before Rachel Reeves increased capital gains tax in the budget.
Researchers at Calastone, the largest global funds network, found that stock sell orders rose by 36 per cent in the month to October 29 to a record £17 billion, suggesting that investors tried to crystallise profits to avoid paying more tax on them.
At the budget last month the chancellor announced that the higher rate of capital gains tax paid on shares would increase to 24 per cent from 20 per cent while the lower rate would increase to 18 per cent from 10 per cent.
Rachel Reeves’s budget included £40 billion of tax rises
TIMES PHOTOGRAPHER RICHARD POHLE
The move was part of a collective £40 billion increase