-
News
-
Blog
-
Archive
When you sell assets like shares, investment properties, or pricey personal belongings, you must pay capital gains tax (CGT) on the profit. More people might find themselves unintentionally liable now that the annual exempt amount has been lowered to £3,000 for 2024–2025—especially since the CGT rates increased recently from 10% to 18% for basic rate taxpayers and from 20% to 24% for higher rate earners. Here are some tried-and-true, law-abiding methods for lowering or even doing away with CGT.
Top Ways to Reduce Your CGT Bill
Strategy |
Description |
Use your Annual Exemption (£3,000) |
Dispose of portions of your holdings across tax years to maximise allowance |
Transfer assets to spouse |
Married couples can double the exempt amount and use lower tax bands |
Hold assets in ISAs/VCTs |
ISAs and Venture Capital Trusts shelter future gains from CGT entirely |
Offset losses |
Use capital losses to reduce taxable gains—carry unutilised losses forward |
Invest in 'wasting assets' or chattels |
Certain antiques or watches under £6,000 are automatically exempt |
Consider Business Asset Disposal Relief |
Selling qualifying business assets can attract a 10% CGT rate |
Implementing combinations of these strategies can let you keep more of your investment gains—without breaking the law.
Why Professional Tax Advice Matters
The landscape of CGT rules is shifting rapidly, and what worked last year may no longer apply. Around £20bn in CGT revenue is predicted for 2025/26 meaning the government may tighten exemptions or adjust rates further. With high-value deals at stake, it's smart to seek help from accountants in bolton lancashire who can:
- Structure disposals and inter-spousal transfers
- Recommend ISA/VCT investments
- Calculate accurate loss offsets
- Advise on Business Asset Disposal Relief eligibility
Next Steps to Take
- Review asset holdings and check gains against the £3,000 annual allowance.
- Break up asset sales across tax years if possible.
- Move appropriate holdings into ISAs or VCTs for full shelter.
- Balance sales with unused losses to offset CGT.
- Consider joint disposals with your spouse to double unused allowances.
- Consult specialists like accountants in bolton lancashire to ensure legal compliance and maximised savings.
Final Takeaway
It is possible to drastically lower or avoid CGT on gains by combining exempt transfers, tax-efficient wrapping (such as ISAs/VCTs), and careful timing. But since the regulations are intricate and constantly evolving, expert advice is crucial. Bolton Lancashire accountants can assist in creating a plan that is specific to your financial circumstances, allowing you to confidently navigate CGT regulations and retain more of your hard-earned profits.