Smith banks £7m from Collins sale

By Daily Mail Reporter
Updated:

 

City bruiser Terry Smith has pocketed £7.1m after selling his entire stake in stockbroker Collins Stewart.

The outspoken broker sold his 8.9m shares - 3.6% of the company - two weeks after stepping down from the board as deputy chairman to focus on running Tullett Prebon, the interdealer broker he founded.

He will use the money to launch his new fund management business, Fundsmith, which was given approval to operate by the Financial Services Authority last week.

Smith was one of several businessmen who moved their share portfolios into trusts over the summer in an attempt to avoid having to pay a higher rate of Capital Gains Tax that was expected in the Government's emergency Budget.

His shares in Collins Stewart (down 3.5p at 79p) were transferred to a trust in which he was the sole beneficiary just four days before the Budget, which saw CGT rise from 18% to 28%.

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