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Capital Gains Tax - Gambit's View

24 November 2021

The UK Capital Gains Tax (CGT) regime continues to be the subject of extensive scrutiny, with growing speculation that the current framework may be overhauled. Alterations to the CGT regime were anticipated in the October 2021 Budget, as a potential solution to mitigate a proportion of the government’s emergency Covid-19 spending. However, no changes to the CGT framework were introduced.

Potential CGT reform remains firmly on the political agenda in view of the upcoming Spring 2022 Budget. This expectation has caused a surge in UK M&A activity, with shareholders motivated to execute transactions before potentially significant changes to the current regime take effect.

Both the current valuation metrics and the prevailing CGT framework present an attractive opportunity for sellers to realise maximum value from their shareholding. With currently buoyant deal volumes and values sellers face optimum conditions to engage with the M&A market.

Click here to read Gambit’s view of the potential CGT reform and its implications on shareholder exits.