Private wealth management advisers 'steering clear of CGT investments'

The majority of private wealth management advisers are moving away from investments that are likely to be susceptible to the expected increase in capital gains tax (CGT).

According to a survey of independent financial advisers (IFAs) by 1st-The Exchange, 60 per cent are helping their clients take their funds away from such assets, the Financial Times reports.

An increase in the levy is widely expected to be announced following the new coalition government’s emergency Budget on June 22nd.

Paul Yates, director at 1st-The Exchange, was quoted by the news source as saying June 22nd is ’an important date for the industry’.

’We can already see that certain announcements are affecting IFAs’ advice to their clients,” Mr Yates remarked.

Last week, Bill Dodwell of Deloitte stated the changes to the tax are unlikely to raise more than £1 billion for the new government, which is seeking ways to bring down the Budget deficit.ADNFCR-2318-ID-19789239-ADNFCR