Next chief executive Lord Wolfson has sold a £29m stake in the retail giant ahead of potential changes to the capital gains tax (CGT) regime, expected in Chancellor Rachel Reeves’ first Budget next month.
New filings reveal that the conservative peer offloaded 290,000 shares between Friday and Tuesday, valuing its total stake at £29.2 million. Prior to this sale, Lord Wolfson owned approximately 1.4 million shares, equivalent to 1.2% of Next’s shares, worth approximately £141 million.
The company declined to comment on the sale process. Following the announcement, Next shares fell 2%.
The timing of the sale has sparked speculation, with Reeves expected to target CGT in her next Budget, which could bring it in line with income tax rates. Currently, top earners pay up to 45% on income but are subject to CGT rates of 20% on assets such as shares and 24% on property gains. Taxpayers at the basic rate face 10% and 18% respectively.
Many investors rushed to sell assets before any changes took effect. “With many anticipating increases in CGT, we have seen a rise in asset sales in recent weeks,” noted Duncan Mitchell Innes of TWM Solicitors.
HMRC recorded its highest CGT revenue for August since 2008, with £197m paid by landlords and investors looking to offload assets in anticipation of a tax rise.
This latest sale marks the third time Lord Wolfson has reduced his stake, now leaving him with a stake worth around £100m. This sale comes after a significant rise in Next’s share price, which has risen by 123% since October 2022.
Next has outperformed many of its rivals, helped by a series of earnings upgrades. Earlier this month, the retailer raised its profit forecast by £15m, with pre-tax profits expected to reach just under £1bn, helped by rising international sales.
The company has credited 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.