Next CEO Lord Wolfson has sold a £29 million stake in the retail giant ahead of potential changes to the capital gains tax (CGT) system expected in Chancellor Rachel Reeves’ first budget next month.
New documents show the Conservative peer sold 290,000 shares between Friday and Tuesday, valuing his total stake at £29.2 million. Prior to this sale, Lord Wolfson owned approximately 1.4 million shares, representing a 1.2% stake in Next, worth approximately £141 million.
The company would not comment on the sale. Following the announcement, shares of Next fell 2%.
The timing of the sale has sparked speculation as Reeves is expected to target CGT in her upcoming budget, potentially bringing it into line with income tax rates. Currently, higher income earners pay up to 45% on income but are subject to CGT rates of 20% for assets such as shares and 24% for property gains. Basic rate taxpayers will face 10% and 18% respectively.
Many investors are rushing to sell assets before the changes take effect. Duncan Mitchell-Innes of TWM Solicitors commented: “With many expecting a rise in CGT, we have seen an increase in asset sales in recent weeks.”
HMRC recorded the highest August CGT receipts since 2008, with £197 million paid by landlords and investors looking to offload assets ahead of the tax rise.
This latest sale marks the third time Lord Wolfson has reduced his shareholding, meaning he now has a stake worth around £100 million. The sale follows a notable rally in Next’s share price, which has risen 123% since October 2022.
Next’s performance has surpassed many of its competitors, supported by a range of profit improvements. Earlier this month the retailer raised its profit guidance by £15m, with pre-tax profits expected to be just under £1bn, fueled by growing international sales.
The company sees the convergence of global fashion tastes, driven by trends popularized through streaming services such as Netflix and TikTok, as a key driver of its success.