UK company bosses and senior executives are preparing to sell down stakes in businesses ahead of a potential increase in capital gains tax next year.
A review commissioned by Rishi Sunak, the chancellor, has recommended increasing capital gains tax rates to bring them in line with income tax rates, which could effectively double the cost of selling shares in companies.
City brokers and accountants said they had been swamped with calls from senior executives with long term shareholdings as well as company founders that have retained large stakes in their businesses and who fear being caught by higher taxes.
“Quite a few companies are asking us to find them a window to sell before March,” said one senior City financier, who added that some were worried about being tied by closed periods running up to results in the spring.
“Another founder owner has asked to complete the sale of his business before March. It makes a difference in the price.”
If enacted, the…