Do CGT Changes Mean High Risk Investments Are Effectively Taxed at 60%?

As necessitated by Brandolini's Law, this post was written with a high degree of AI assistance.

David McMahon posted a thread on Twitter claiming the government's proposed capital-gains changes — index the cost base for inflation, but recognise capital losses only in nominal terms — quietly punish investors more and more as inflation rises. It comes with a Monte-Carlo simulation of tens of thousands of random stock portfolios, and the headline chart really does climb alarmingly. Here is how he put it: