There is considerable speculation that a rise in capital gains tax (CGT) is on the cards, with a new rate as high as 25% being suggested in some quarters.
Although this is mere speculation at this stage, it does serve as a timely reminder that there is still a brief window of opportunity to review your CGT position and optimise it before the tax year end.
Since there is little prospect of the CGT situation improving and at least a possibility if not a probability that it will get worse in the next tax year, it might be worth bringing forward transactions you have planned for further down the road so that any gains will be charged at the current rate rather than risk having to pay a higher rate on the same gains later on.
And while you are reviewing your CGT position, do ensure that where appropriate you make full use of both yours and your spouse’s exemptions before the tax year end.
As with any tax planning considerations, decisions regarding CGT savings should not be made in isolation but within the overall context of your business goals.
Please contact us if you would like help or advice in this area. Alternatively, our business guides may provide you with further insight into CGT.
Tags: Capital gains tax (CGT), Personal tax return, tax planning
