Plan to save unnecessary tax
Research carried out recently suggests that money “wasted” in avoidable capital gains tax (CGT) could be as high as £550 million this year alone.
CGT rates increased in the June Budget from a flat 18% of gains to either 18% or 28% depending on what tax rate an individual is liable for on income .
The tax system is complex and confusing but there are many planning strategies that can be employed to reduce CGT liabilities and ensure better use of the capital gains tax allowances available.
These include selling assets and buying them back within an ISA “bed and ISA ” or even “bed and spouse”; a tactic whereby assets are sold and bought back immediately by a spouse.
Clearly a “buy and hold” strategy can be a costly exercise when assets are eventually realised if gains have not been managed efficiently along the way.
Good professional advice can add serious value in reduced tax alone but can also help you to navigate the complexities of the UK tax system.
Is it time to review your investments?
Angela Murfitt | Profile | Other Posts
Angela is a Chartered Financial Planner providing independent financial advice to clients in the Staffordshire, South Cheshire and surrounding areas.