Broker locks in lower tax rate

CITY veteran Terry Smith has sidestepped an expected rise in capital gains tax (CGT) by restructuring the way he holds £40m of shares in Tullett Prebon and Collins Stewart.

Smith, who has played a key role building up both companies, has transferred the shares to a trust of which he is the sole beneficiary. The move allows him to lock in any gains he will make on the sale of the stock at the current rate of CGT -- 18 per cent -- rather than the 40 per cent tipped for today’s emergency Budget.

A spokesperson emphasised Smith would keep ownership of the shares.