Investors flock to ISAs amid fears of Autumn Budget CGT hike

What is happening?

Investors are flocking to Individual Savings Accounts (ISAs) amid fears that the Autumn Budget will see a hike in Capital Gains Tax (CGT). According to recent figures, ISA subscriptions have surged by 20% in the past month as investors seek to shelter their gains from potential tax increases.

Why are investors flocking to ISAs?

ISAs are tax-efficient savings and investment accounts that allow individuals to save and invest up to £20,000 each tax year without paying income or capital gains tax on their returns. This makes them an attractive option for investors who are looking to shelter their gains from potential tax rises.

What are the potential CGT changes?

It is speculated that the government may announce changes to the CGT regime in the upcoming Autumn Budget, including increasing the rate of CGT or reducing the threshold at which it is payable. These changes would make it more expensive for investors to sell their assets, prompting some to consider moving their investments into ISAs now to avoid the potential tax implications.

How should investors respond?

Investors should carefully consider their options and consult with a financial advisor if necessary to determine the best course of action. Those who are concerned about the potential CGT changes may wish to consider moving their investments into ISAs to protect their gains from potential tax increases.