Some 27 per cent of shareholders are unaware that increases in share values are liable to capital gains tax when sold, data from Equiniti has revealed.
The provider of share registration, retail investor services and employee benefits, highlighted that capital gains tax is payable if the gain on shares, together with any other capital gains exceeds the annual exemption limit, currently £10,680 for the 2011/12 tax year.
The research, which was conducted with over 3,500 client employees, also found that 21 per cent of shareholders would like to know more about capital gains tax.
Mark Taylor, director of investment services at Equiniti, said; “Capital gains is one of those taxes that many people don’t come into contact with very often.
“However, whilst it is impossible to quantify, it is likely that HMRC is not receiving all that it should. Rather than this being a result of tax evasion, our research suggests it is investor ignorance that is causing the error.”
