Slashed capital gains tax (CGT) thresholds have triggered a jump in the number of clients needing support with calculating their liabilities, tax software specialists Financial Software (FS) has found.
FS research, carried out in conjunction with The Lang Cat, found that advisers reported 18% of their clients were impacted by CGT in 2022/23. This more than doubled to 37% in the 2024/25 tax year. In the Autumn Budget last year, chancellor Rachel Reeves cut the annual exemption amount for CGT from £12,300 in 2022/23 to £3,000 in 2024/25, bringing in an additional 87,000 taxpayers into the scope of the tax. Over the same period, one in ten (10%) advisers reported gaining new clients because of CGT changes and/or unexpected liabilities due to cuts in the tax-free allowance. According...
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