Investors 'to begin disposing personal wealth assets'

Those with high levels of private wealth are expected to start selling off some of their assets in anticipation of the expected increase in the capital gains tax.

Individuals will be looking to dispose of their second homes and shares over the coming days in a bid to avoid the rise, the Financial Times reports.

The changes to the capital gains tax - which were not expected to be introduced until April 2011 - could come as soon as June, immediately after the emergency Budget due to be conducted at the start of the month.

Bill Dodwell of Deloitte said the changes - which are likely to result in non-business capital gains being taxed at rates close to those that are already applied to income - are unlikely to raise more than £1 billion.

And the Institute for Fiscal Studies noted it is not clear whether the alterations will generate the £1.9 billion promised by the Liberal Democrats in its manifesto prior to forming a coalition government with the Conservative Party following last week’s general election.ADNFCR-2318-ID-19778038-ADNFCR