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The AIM-All Share Index climbed on Wednesday afternoon in London as changes to inheritance tax proved by UK Chancellor of the Exchequer Rachel Reeves’s budget proved no worse than feared.
Reeves said a 50% relief would apply in all circumstances on inheritance tax for shares on the alternative investment market, and other similar markets, setting the effective rate of tax at 20%.
On capital gains tax, Reeves said she we will increase the lower rate of capital gains tax to 18% from 10%, and the higher rate to 24% from 20%, while maintaining the rates of capital gains tax on residential property at 18% and 24%.
Around 1330 GMT, the AIM All-Share Index was 2.2% higher at 731.37 after being around 0.4% higher ahead of the budget statement.
Kathleen Brooks, an analyst at XTB, remarked: ‘The CGT increase is lower than expected, which suggests that Reeves’ bite is not as bad as feared.’
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