IFAs forced on defensive over "knee-jerk" CGT advice

In the weeks leading up to Tuesday’s Budget, advisers were divided over how and when to deal with an expected “double tax hit” of a non-business CGT rise to 40-50% and a cut in the tax-free allowance to as little as £2,000. Many advisers told clients to take gains before Budget Day, even in smaller portfolios where their advice would usually be to ‘stay put’. But Chancellor George Osborne surprised on Tuesday with softer measures, including a much lower CGT rise to 28% for higher rate income taxpayers. There was no rise from the current 18% for basic rate taxpayers and the annual a...