Britons dumped more than £600m worth of UK shares last month ahead of an expected raid on capital gains tax by Rachel Reeves at the Budget, figures show.
A total £666m was withdrawn from funds that invest in UK companies in September, data published by Calastone showed, the first time since October last year that funds have suffered monthly outflows.
Almost £420m flowed out of equity income funds, which are heavily skewed towards UK stock, during the month.
It comes amid fears that the Chancellor could hike capital gains tax in her maiden Budget later this month. Ms Reeves is reportedly considering increasing the rate of capital gains tax, which is paid when shares are sold, from 20pc to as much as 45pc so it is equalised with income tax.
The Government’s bleak outlook ahead of the Budget on Oct 30 has been blamed for killing off a short-lived recovery in sentiment towards the UK.
Ms Reeves…
