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    Category: Tax

    Use your Capital Gains Tax allowance before it halves

    The 5 April marks the end of the 2023/24 tax year and now is the time for you make sure you have used up your allowances, particularly Capital Gains Tax (CGT).

    It’s a big year for Capital Gains Tax, as from 6 April the allowance will be cut from £6,000 to £3,000.

    This means that it’s your last chance to cash in on the bigger allowance, so if you have investments that have a capital gain, it may be beneficial to realise these gains up to the current £6,000 allowance to save tax.

    If you’re married and your spouse hasn’t used their allowance, you can transfer assets into their name and they can then sell the assets in their name to make use of their allowance, in turn paying less tax.

    Move proceeds of sales elsewhere

    You do have the option of moving any remaining money into tax-efficient accounts such as pensions and ISAs when selling investments.

    It doesn’t matter if those accounts are currently full, you can sell now and move the money into tax-efficient accounts when the allowances reset on the 6th April

    Plan ahead for next year

    With the allowance lowering to £3,000, you’ll need to plan ahead where possible and think where you can move your money to lower your tax liabilities in 2024.

    Seek financial advice

    Getting your head around all the legislations can be taxing, as they are extremely complex, so you may not be sure exactly how you can lower your tax bill and what allowances apply to you. That’s where a professional adviser comes in.

    A financial planner can guide you through the process and outline the options you have when it comes to tax rules and regulations. This will then give you the confidence to know you’re making the right decisions.

    If you need any assistance when it comes to your tax bills, then please don’t hesitate to get in touch with one of our team, who would be happy to help.

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