Our most common tax-saving tips are as follows:-
- Moving assets across into investments that are exempt from capital gains tax (although care must be taken as any sales to move investments are likely to be disposals subject to CGT)
- Timing disposals to spread across more than one tax year whenever possible (this means that part of the gain is taken in one tax year, and part in the next, allowing you to use two CGT annual exemption allowances. An example of this might be selling shares in blocks to fund a property purchase)
- Transferring assets from an asset-rich spouse to an asset-poor spouse, so that both annual exemptions can be used in future disposals
- Careful selection of which assets to sell in order to minimise tax or generate tax-free income. For example, all things being equal, using the exemption to dispose of all or part of those assets with the highest potential gain can be very effective.
The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future. This information is based on our understanding of current HMRC rules and practice. Tax rules and allowances are not guaranteed and may change in the future.
The FCA does not regulate certain tax planning activities and services.