Capital Gains Tax "Will be a Prime Target" for Labour, says Financial Advisor

Incoming Chancellor Rachel Reeves is expected to raise Capital Gains Tax as soon as the Autumn. File image. Source: Keir Starmer campaign.

Act now to protect against a potential rise in Capital Gains Tax (CGT) under a Labour government, says the CEO of one of the world's largest independent financial advisory and asset management organisations.

Nigel Green, chief executive of deVere Group, says CGT is a low-hanging fruit for Labour, who will "need a quick and effective means to generate the revenue needed to help pay for Labour’s extensive manifesto commitments."

The call comes ahead of the July 04 election, which is expected to give Keir Starmer's Labour a substantial majority in Parliament.

"Labour has promised that it would not increase income tax, national insurance and VAT – three major taxes – but also outlines critical plans to address issues such as homelessness, higher education funding, adult social care, and local government finances. These all require substantial funding," says Green.

“The money has got to come from somewhere – and we expect that an increase in CGT will be a prime target to help plug the gap," he adds.

deVere advises investors to be acutely aware of the impact this could have on their financial plans.

“The introduction of higher CGT rates could occur shortly after Labour takes office, possibly during an Autumn Statement," says Green. "Many investors will be reviewing their portfolios immediately and considering tax-efficient strategies to mitigate impacts on their wealth."

deVere Group says those with investments should consult with their financial advisors to explore tax-efficient options and portfolio adjustments.

"Don't wait until it’s too late—proactive planning is key," says Green.

Options available to investors include tax-efficient investment vehicles, rebalancing portfolios, and potentially realising gains under the current CGT rates before any changes are implemented.