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Annual Exemption

Normally the aim should be to utilise an individual's annual CGT exemption, at the moment £10,900. For any greater price tax payer paying CGT at 28% this could potentially save £3,052 of CGT for 2013/14. Where an annual CGT exemption has currently been utilised the taxpayer should really contemplate deferring any additional disposals until the following tax year. A disposal deferred from say late March to mid-April could result in a delay of 12 months in any CGT ultimately payable around the later disposal as well as utilising the annual exemption for the later tax year. Gains can efficiently be transferred 'tax free' involving husband and wife in order to utilise the annual exemption in the other spouse. This could also potentially lower any CGT payable from 28% to 18% where the other spouse is often a simple rate taxpayer. Note on the other hand that the period involving the transfer in the asset along with the sale really should be as long as attainable.

Owning assets jointly between husband and wife automatically guarantees that each spouse's annual exemption is utilised within the identical proportion.

Allowable Expenditure

Guarantee any capital improvements to an asset through ownership are claimed as part of the allowable expenses in arriving in the Capital Gains Tax Advice on disposal. Legal charges etc on the acquire with the asset may also be claimed as a deduction on disposal.

Where an asset was initially acquired following the death on the previous owner make sure that marketplace worth from the asset at the date of death is determined as this provides the base price (although nothing at all was in fact paid to get the asset!) Use of capital losses

Any capital losses brought forward from an earlier tax year may be utilized efficiently by setting them only against capital gains standing above the annual exemption. Note however gains and losses in the exact same tax year should be netted off against one another. Exactly where a loss is incurred around the disposal of specific shares in an unquoted trading company, an solution exists to make use of the loss a lot more tax efficiently by setting the loss against a taxpayer's earnings rather than capital gains. Assets of Negligible Value

Where an asset has come to be of negligible value the loss can be claimed against capital gains with no in fact disposing of your asset. Negligible worth claims can be backdated up to two tax years provided the asset was of negligible value in the earlier date.

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