Capital Gains Tax (CGT) enquiries more than double as investors fear the possibility of increased rates following the coalition government's emergency Budget in a few weeks.

Hornbuckle Mitchell, the self-invested personal pension (SIPP) specialist, has reported an increase in pension enquiries after the Lib-Con Government floated its proposal to raise CGT.

Hornbuckle Mitchell's director, Mary Stewart pointed out that this interest is primarily from those who wish to minimise future tax of share portfolios. "They are seeing these few weeks ahead of the emergency Budget on June 22 as their last chance to crystallise gains and, at worst, be taxed at just 18 per cent.

"It is very unfortunate when people feel panicked into making decisions, but recent events mean gains aren't as high as if the stock market was booming."

She explained that there are two possible actions for people wanting to continue using the same investment strategy. Either selling their shares to their SIPPs, taking any CGT hit now but shielding future gains from tax, or placing the shares into the pension as a contribution so that they benefit from the tax relief that is currently available to boost the fund value and offset any CGT.

"It is pretty clear," Stewart continued, "that these plans to raise CGT are also making people wonder 'what next?' They know the Liberal Democrats want higher rate tax relief abolished too which is encouraging them to make these decisions sooner rather than later."

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