Investors are rushing to sell shares and property ahead of the Budget on 24 March, believing Alistair Darling will raise capital gains tax (CGT) rates.
By realising large gains before next Wednesday's Budget, taxpayers hope to lock in the current 18% capital gains tax rate and dodge any rise, the Financial Times reports.
But the chancellor is thought to have rejected raising the tax now, fearing it could provoke a backlash from the business community and undermine his central Budget claim to be supporting jobs.
The Treasury admits the gulf in rates between the CGT rate of 18p and the new 50p top rate of income tax for high earners - which takes effect in April - is creating some "strange incentives".
Mr Darling acknowledges the Treasury will, at some point, have to close the gap.
"We are continuing to look at this issue," said one government insider. Read more...
MORE than half a million UK pensioners living overseas will find out today if they have won an appeal against a freeze on their pensions, the BBC reports.
Pensioners who moved to countries such as Australia and Canada only receive the level of pension paid at retirement - which might be only £6 per week.
A court ruling from the European Court of Human Rights will decide on today whether they should receive increases.
If the pensioners succeed, it will cost the government at least £500m per year. Read more...
What made financial headlines over the weekend?
Pensions neglect to be criminal offence
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds