Fidelity International bemoans impact of CGT increase on savers

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Fidelity International bemoans impact of CGT increase on savers

Wed 2nd Jun 2010

Savers will find their income suffers as a result of the proposed increase in capital gains tax (CGT), a spokesperson from Fidelity International has claimed.

Head of tax planning at the firm Paul Kennedy suggested that millions of long-term savers will be affected by the levy, which he described as a charge originally set up to tax the rich.

He explained it is not just wealthy individuals who will be hit by the change, but all investors in the spectrum.

"The CGT allowance must be maintained at a level where it neither produces a disproportionate burden on the modest investor nor distorts or compromises sensible long-term investment plans," remarked Mr Kennedy.

These comments follow calls from Fidelity International for the government to leave the tax-free allowance at £10,100 in place of drastically reducing this figure.

Recent comments from the firm's fund manager selection team suggest savers would do well to put money into the strategic bond sector.

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