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The number of people paying capital gains tax will increase by more than a third in 2008, according to Skandia, which has criticised recent changes to CGT legislation.
Analysis of Government figures by the group claims to shows that 35% more people will pay capital gains tax this year compared to last, largely as a result of the reforms that came into affect in April.
This figure, said Skandia, a provider of long-term savings products, is clear evidence that CGT has simply been reformed rather than reduced and is another stealth tax from the Treasury.
Government figures showed that 260,000 people paid CGT in 2007, and this is expected to rise by 90,000 to 350,000 in 2008.
While some people may pay less due to the 18% flat rate, more people will be paying some CGT, said the company.
It added that the winners are likely to be higher rate tax payers, whilst the people paying more CGT are likely to be those in the starting and basic rate tax bands or those with small gains, which now become taxable due to the loss of taper relief.
Skandia's head of tax and financial planning, Colin Jelley, remarked: 'The CGT reforms brought in by the Budget are aptly named: they are reforms not reductions.
'Many investors will find that whereas previously they would have been liable to pay 40% of nothing, now they are liable to pay 18% of something. In other words, their tax liability has gone up.'
