Less than 1% of adults in the UK contribute to CGT, with £572m being collected in the last quarter.

There are two rates for CGT, the lower rate of 10% will rise to 18%, while the higher rate of 20% will rise to 24%.

This is the first time CGT rates has been significantly changed since 2016, when the top rate was slashed from 28% to 18%. 

Rowan Morrow-McDade, tax director at Alexander & Co said: 'The rate increase is not as large as many expected in the tax profession.

‘Many of those in professional services have been working tirelessly in recent weeks to complete transactions pre-budget day, anticipating an immediate change in the CGT rates. That has proved correct.

‘Those who completed transactions yesterday have effectively saved 4% in CGT compared to those completing today. The 24% CGT means the UK remains relatively competitive compared to other developed countries. The predicted exodus of business owners overseas if the CGT rate became unpalatably high is now unlikely to happen.’

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