Capital gains tax explained Capital gains tax tips
Key tips for keeping your capital gains tax bill as low as possible
- Keep receipts and records for all assets on which CGT might eventually be due.
- Husbands and wives and civil partners each have their own CGT allowance of £11,100 in 2015-16 (£11,000 in 2014-15). By transferring an asset into your joint names, you can both make use of your tax-free allowance so that up to £22,200 of any gain can be tax-free in 2015-16 (£22,000 in 2014-15). But the transfer to your spouse or partner must be a genuine outright gift.
- Paintings, antiques and other collectibles can be a tax-efficient investment, especially where they are not treated as a set and so can be sold piece by piece with each item qualifying for the £6,000 exemption.
- Unmarried partners can each nominate a different home as their main home to get tax relief on both. (Married couples and civil partners must choose just one.)
- If you live in a property as your main home for a time before letting it out, you can potentially reduce the CGT bill when you eventually sell it. See Capital gains and property.
- If you immediately sell employee shares that you get through an Save-As-You-Earn share option scheme, company share option scheme or enterprise management incentive scheme, you may have a CGT bill. Consider selling in several tranches, so that each year’s gain is within your annual tax-free allowance of £11,100 in 2015-16 (£11,000 in 2014-15). See How capital gains are taxed.
- If you get shares through a Save-As-You-Earn share option scheme or a share incentive plan, you have 90 days to transfer them tax-free to an Isa or pension. Gains when you eventually sell will then be tax free.
Which Ltd is an Introducer Appointed Representative of Which? Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited. Your home may be repossessed if you do not keep up repayments on your mortgage.