More than a third, 35%, of wealthy people have sold investments or will do before the Budget due to worries about a capital gains tax rise, according to a new survey.
HNW investment service Wealth Club asked clients their views on the possible rise.
The study of 506 clients with estimated average wealth of £3.15m found nearly a quarter (24%) have already sold investments to avoid potentially higher rates, while a further 11% plan to sell before the Budget on 28 October.
A further 27% said they have considered selling investments but decided against it while just a third (33%) say they have not considered selling ahead of any possible CGT increase. Around 5% say selling is not applicable for them.
If a rise is implemented, the firm warned it would encourage many wealthy investors to hold on to investments for longer than they would normally do.
More than half said a substantial increase in CGT in the Budget will make it less likely they will sell.
Pre-Budget speculation has raised the prospect of CGT rates of 24% being increased to match income tax rates of up to 45%, with the possibility of smaller increases to CGT rates also being considered.
Alex Davies, founder and CEO of Wealth Club, said: “The net impact of a rise in CGT rates could mean the Treasury raising less revenue as a result of a measure intended to boost receipts.
“More importantly perhaps an increase in CGT rates could have the effect of making the UK a less attractive place to invest with the knock-on effects on economic growth and employment.”
• Research conducted by Wealth Club among 506 of its clients whose average wealth is £3.15m including homes, pensions, assets and investments during October 2026.