Q. I’m close to going over the capital gains tax limit. How can I avoid a bill?
A: It is important to remember that capital gains tax (CGT) is only payable when you realise the gain. That is to say, if your asset(s) worth has grown more than the annual allowance of £3,000, you pay CGT on the gain above that only if you sell the asset(s).
If you are planning to sell, you might be able to make a partial sale before the end of the tax year, so that your realised gain is below the CGT threshold. You could then make another partial sale in the next tax year. You could also transfer part of your assets into an investment that doesn’t attract CGT, like an ISA.
Please get in touch so that we can review your specific situation.
