This is according to a 1st Exchange poll which shows that 29% of IFAs are advising their clients away from assets attracting CGT ahead of anticipated further increases.
The recent rise in the top rate of capital gains tax (CGT) from 18% to 28% proved more modest than some had feared but a recent poll from technology solutions provider 1st Exchange reveals many advisers are moving their clients away from assets attracting CGT in anticipation of further rises.
In a poll of 187 advisers, the fear of further increases in top rate CGT has seen many (29%) advise their clients to take precautionary measures to move into more tax efficient vehicles.
The majority polled were relieved that CGT was not pushed up to 40%. However, an almost equal split of advisers said they were advising clients to stay invested to avoid triggering CGT at the new higher rate (36%) or take advantage of market gains in spite of the increase (35%).
Interestingly, only 8% of advisers thought the hike to 28% in top rate CGT would have a major impact on the UK market and long-term investing.
Paul Yates, propositions and business development director for 1st Exchange, said: "The expectation from many advisers is that the Government's planned austerity measures could include a further hike in the top rate of CGT, which will exacerbate the rising tax burden on consumers."
