Riding the storm5 Mar 2021 15:00
These are the pencilled in lows for the next few weeks.
EQT 1.24p, AFC 28.391p , PHE 4.223p
Reason for the sharp decline is the possible CGT changes to be announced on
Tax Day 23rd March.
Reform of CGT could mean the tax will be in line with personnel tax levels,
Basic rate taxpayer would see the CGT rate go from 10% to 20%
and higher rate taxpayer would see the CGT rate go from 25% to 45%
Also the double whammy of reduced CGT allowances from £12500 per a year
to between a suggested figure of £2000-4000 per a year.
The Government will need to raise revenue in the next few years, if a snap
election is called in 2023, after the PM revokes The Fixed Parliaments Act in May 2021.
A early General Election would be called because of GDP figures after 2023 are predicted to drop to below 2% from the predicted highs in 2022-3 of between 7 and 10%.
With the end of the tax year only weeks away large non-ISA investors have to
weigh up that there maybe a sharp reduction in their margins now and sell up.