High-net-worth investors are wary of potential tax changes in the UK, saying it would result in them investing less in private and public equities, according to a new survey.
Connection Capital, which has raised more than £527m in capital from private professional investors to invest in the private markets, surveyed its clients between 18 June and 21 July.
Half of the respondents said that a potential increase in capital gains tax (CGT) would make them invest less in equities than planned, while 7% said they would consider stopping these investments altogether.
The possible increase in CGT and business asset relief was cited by 88% of respondents as reasons to feel less confident about investing in UK companies compared to 12 months ago.
There has been constant speculation about a potential increase in CGT under the Labour government, with reports saying chancellor Rachel Reeves is considering it to plug a £20bn gap in the public…
