Pictured above: John Rouse

Individuals worried about a rise in capital gains tax have a 'window of opportunity' to plan their finances before changes come in, a Midlands solicitor has said.

John Rouse, a Wills, Trusts and Tax expert at Wright Hassall solicitors in Leamington Spa, said that post-election uncertainty on the new level of tax has caused concern and that after the new coalition government ruled out a rise in inheritance tax, individuals should consider planning their finances to minimise their tax exposure.

The tax, which primarily affects profits made from shares, investments, second homes and investment property, is currently set at 18 per cent but analysts say that could rise as to 40 per cent or more, albeit with concessions to avoid punishing entrepreneurs.

However, Rouse says that there is still a chance for individuals to limit their exposure to the changes before they come into force.

Mr Rouse said: "There is a lot of speculation on how high the capital gains tax will go and a lot of individuals are bracing themselves for a big financial hit.

"The new Government has confirmed there will be a rise but is unlikely to make any announcement until the emergency budget on June 22, with the probability that the changes will come into force on April 6 next year - although it could be introduced sooner.

"Most analysts agree that this isn't going to be a modest hike - it's going to be very large, and certainly will have a major impact on investors, individuals with second homes and entrepreneurs.

"However there are steps that can be taken, even before the emergency budget, to plan finances more effectively to minimise the hit people will take."

For more information about Wright Hassall please visit their website here: www.wrighthassall.co.uk