Amid rumours that the rate of capital gains tax (CGT) payable on the sale of shares could be increased in this month’s Budget, new analysis from GraniteShares, a global issuer of Exchange Traded Products (ETPs) with more than $9 billion under management, reveals a rise in the value of shares sold by directors of UK listed companies.
Between 1st September 2024 and 22nd October 2024, the value of sell and buy transactions by directors in their company’s shares was £345.5 million and £63.0 million, respectively.
GraniteShares’ analysis reveals that for the first quarter of this year, the value of sell and buy transactions by directors of UK listed companies of shares in their own companies was £313.5 and £218.4 million, respectively.
Speculation is mounting that CGT on the sale of shares, which is currently set at up to 20%, will increase in the Budget on 30th October. The tax could rise by several percentage points.
Will Rhind, Founder and CEO of GraniteShares, said: “Shares that are held outside of an ISA are subject to CGT on any profit made when you sell them. Everyone receives an annual CGT allowance of £3,000 but any gains above this can be subject to CGT.
“Our analysis shows speculation around a possible increase in CGT paid on any profit made on the sale of shares has led to an increase in the value of stock sold, and we expect this trend to continue in the run-up to next week’s Budget.
