I know this isn’t a terribly exciting topic, but the end of the tax year is imminent and a few of you may still be completing your last-minute self-assessments!
As most of you will be aware the CGT allowance reduced to £6,000 in the current tax year and will reduce further to £3,000 in the 2024/25 tax year.
This will mean that for a number of you it will be much more difficult to keep any gains within the allowance, when selling down to fund ISAs or to rebalance the portfolios. It is arguably often better to realise taxable gains and pay the tax on profits in a taxable portfolio, rather than accumulating significant unrealised taxable gains over time.
From a record keeping perspective, we will be issuing you with CGT gains/losses that have been realised once a transaction has been completed. Where necessary, you should ensure that these are reported on in your self-assessment forms.
Please note that you should also report any losses (which given the markets over the last few years could well be the case). You have up to four years to report losses to HMRC, but they can be carried forward indefinitely to use against future gains.
As always, please do speak to your financial planner if you have any questions about Capital Gains/Losses.
🚨 Tax Alert: The CGT allowance is dropping to £3,000! Are you prepared? Check out our latest blog post for essential tips on managing your investments and self-assessments before the tax year ends. #TaxPlanning #CGTChanges Share on X