Next’s chief executive, Lord Wolfson, has sold a £29m stake in the retail giant ahead of potential changes to the capital gains tax (CGT) system, expected in Chancellor Rachel Reeves’s maiden Budget next month.
New filings reveal that the Conservative peer offloaded 290,000 shares between Friday and Tuesday, valuing his total stake at £29.2m. Prior to this sale, Lord Wolfson owned approximately 1.4 million shares, equating to a 1.2% stake in Next, valued at around £141m.
The company has declined to comment on the sale. Following the announcement, Next shares dropped by 2%.
The timing of the sale has raised speculation, as Reeves is anticipated to target CGT in her upcoming Budget, potentially aligning it with income tax rates. Currently, higher earners pay up to 45% on income but are subject to CGT rates of 20% for assets like shares and 24% on property gains. Basic-rate taxpayers face 10% and 18%, respectively.
Many investors have been rushing to sell assets before any changes take effect. Duncan Mitchell-Innes of TWM Solicitors noted, “With many expecting CGT increases, we’ve seen a surge in asset sales in recent weeks.”
HMRC recorded its highest August CGT receipts since 2008, with £197m paid by landlords and investors looking to offload assets in anticipation of the tax hike.
This latest sale marks the third time Lord Wolfson has reduced his shareholding, now leaving him with a stake worth around £100m. The disposal follows a remarkable rally in Next’s share price, which has surged by 123% since October 2022.
Next’s performance has outpaced many of its competitors, bolstered by a series of profit upgrades. Earlier this month, the retailer raised its profit forecast by £15m, with pre-tax profits expected to reach just under £1bn, fuelled by growing international sales.
The company has credited the convergence of global fashion tastes, driven by trends popularised through streaming services like Netflix and TikTok, as a key driver of its success.
