Capital Gains Tax Planning

Capital gains tax creeps up on you fast. It is necessary, therefore, to construct a capital gains tax mitigation, or even elimination, plan to reduce the amount you pay.  

The fundamental problem is that you only get to use the allowance in the year of disposal.

For instance if you bought an asset in 1990 for £20,000 and it was now worth £80,000 you could only use one years’ capital gains tax allowance.

In addition, if you already have an income close to the higher rate tax band most of your gain would be taxed at the higher rate of 20%.

Solutions?

We can advise upon fairly straightforward solutions that can eliminate the problem.

The easiest method for investors is to consider a phased sale, if such a thing is possible for you.

If you need all the money up-front, you may want to consider paying some of your income into a tax-relievable product in order to reduce the overall burden.

As ever, there are many different solutions which are all dependent upon your personal circumstances.  

Get in touch 

To set up a meeting with a specialist member of our team, please get in touch with your local branch or fill in our online enquiry form and we will be in touch shortly. We have local branches across Lincolnshire, Nottinghamshire, and London in Boston, Bourne, Grantham, Horncastle, Lincoln, London, Newark, Sleaford, Spalding, and Stamford.

Please note that the Financial Conduct Authority does not regulate taxation advice.