Investors seek to secure the current 24% rate ahead of the October 28 Budget, even as the Treasury reportedly rejects matching income-tax rates.
October 13, 2026
Wealthy Britons are rushing to complete asset sales before the October 28 Budget, seeking to avoid a possible increase in capital gains tax that could take a larger share of their investment profits.
Multiple wealth advisers told Bloomberg that clients are trying to realize gains under the current 24% higher rate before Chancellor John Healey announces his tax plans. The prospect of an increase has become a leading concern among wealthy investors, the news agency reported Tuesday.
The uncertainty is already influencing transactions, even though a new increase has not been announced. Sellers face a choice between completing deals under known tax rules and waiting for a potentially higher bill.
Capital gains tax generally applies to the taxable profit from disposing of an asset, rather than its entire selling price. Current main rates are 18% for gains falling within the basic-rate band and 24% above it. Certain qualifying business gains receive different treatment.
The sums explain the urgency. A £1 million taxable gain charged entirely at 24% produces a £240,000 bill. Each additional percentage point would add £10,000. A hypothetical increase to 30% would cost that seller another £60,000; that rate has not been announced.
Tuesday brought some reassurance. The Financial Times reported that Healey had ruled out raising capital gains tax to match income-tax rates, citing four sources. Reuters reported that a smaller increase remained possible.
The Treasury faces pressure to raise revenue as borrowing costs climb and spending commitments grow. Capital gains tax generated approximately £24 billion in the 2025–26 tax year, according to Reuters. But higher rates can change behavior: investors may postpone sales, reducing the gains available to tax.
For business owners negotiating an exit, tax uncertainty adds another variable to price and timing. Bringing a sale forward may preserve a known tax rate, but accepting a lower offer could erase the saving.
The immediate effect is clear: the possibility of a tax increase is moving decisions before the government delivers its Budget. The final rates, effective dates and any relief provisions will determine whether that rush pays off.
JBizNews Desk | London
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