22 December 2009

Brewin Dolphin Investment Management has today urged investors to start considering their options when it comes to tax planning ahead of March 2010, following the Pre Budget Report (PBR) on 9th December.  Capital Gains Tax was the most glaring omission from the speech leaving a gap for a new government who are expected to increase CGT from the present 18 percent and reduce the opportunity for leverage between capital tax and income tax rising to 50 percent in April 2010.  Furthermore, the freezing of personal allowances and higher rate tax thresholds announced will also increase this gap for many more private investors next year. 

Charlotte Black, Director of Corporate Affairs at Brewin Dolphin commented: “This year’s PBR was much more political than fiscal, leaving most of the heavy lifting for any new government next year.  It also only leaves a few months before the Election and the 2010 Budget - whichever comes first - in which investors can consider some strategic alterations to portfolios with CGT at a relatively low level and not to overlook a possible 32 percent differential. 

“We would urge investors to contact a professional financial adviser as soon as practicable to discuss their capital gains position to avoid potential minefields.  There are many options open to investors, including bringing forward sales of investments before the end of the financial year next April, and, if you think the gap may just be narrowed, considering more capital intensive investments.”

The 2009 Budget introduced restrictions on tax relief for pension contributions which were amended adversely by the PBR.  It is also vital that advice is sought about the effects of these changes to pensions and the further proposals to come into effect from April 2011.

The information contained in this presentation has been taken from public sources and is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.  The opinions expressed in this presentation are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.

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For further information please contact the Brewin Dolphin Press Office on 0845 213 3330