Budget tax hikes spur record high equity fund outflows

October saw £2.7bn withdrawn

Investor anxiety in the build up to the Budget resulted in historic high monthly outflows from equity funds, as retail investors looked to crystallise profits at lower capital gains tax rates.

Equity funds suffered their worst month of outflows on record in October with withdrawals reaching £2.7bn, according to the latest Fund Flow index from Calastone.  After sell orders had surged 36% month-on-month, they plummeted by 40% overnight as CGT rate hikes took place immediately on the day of the Budget (30 October).  UK gilt yields hit 2024 high as investors mull over Budget borrowing "Fears of a CGT grab in last week's Budget spurred investors to book their profits and crystallise a lower tax bill well before the chancellor rose to her feet in the commons," said Edward Glyn...