Capital Gains Tax (CGT) and Investments

Investments usually generate income (assessable to income tax and payable each year) and capital gains (tax on which is only due on sale or transfer.) Thus if you hold an investment for a long time it could become “pregnant” with a large gain, and when you come to sell you find yourself with an unexpected tax bill.

Check out Talis Wealth Preservation Guide and Talis Tax Guide

Everyone receives an annual allowance for CGT, £12,000 (2019/20), one each for married couples or those in a civil partnership – but if you don’t use it you lose it. Its worth noting that transfers between such couples are exempt so if one partner needs to crystallise a large gain tis worth considering transferring some of the gain to a partner pre-sale and then both allowances can be offset against the gain.

Many large institutions look after your money for a fee but do nothing to help you manage your capital gains tax liability. Talis actually helps clients with their Capital Gains Tax planning. It’s a central part of our service and includes the following:-

  • Maximising the use of tax-efficient investments such as ISA
  • Ensure that clients use up their Annual Capital Gains allowances – every year.
  • Advice on how to defer any Capital Gains through other investments such as EIS.
  • Ongoing management to ensure gains are not unnecessarily realised.
  • Notification when you may need to report to HMRC on any unrealised gains.

We can also help you manage out gains on existing investments. Talk to our friendly team about the Talis capital gains tax service – we really can save you paying unnecessary tax!

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