Capital Gains Tax

Investors and taxpayers need certainty and consistency, because then it is possible to plan. Labour meddled with an established principle that gains are taxed at income rates - net of indexation or taper, and introduced a flat 18% rate and no taper. Now, responding to socialist side of the coalition, the government looks set to overturn this regime.

There is little doubt that the tax on gains will increase in the budget - perhaps significantly. If you have investments "pregnant" with unrealised gains - now could be the time to sell!