Tim Palmer highlights some potential capital gains tax planning opportunities and pitfalls.
The purpose of this article is to explain the current position with regard to capital gains tax (CGT) for individuals, the newly-introduced stringent reporting requirements, and some possible planning opportunities available.
Recent CGT changes
The annual CGT exemption has been reduced after 6 April 2023 from £12,300 to £6,000. It will reduce again to £3,000 for 2024/25.
These are big reductions in the annual exemption for the small investor who has been used to making capital gains of approximately £12,000 a year, CGT-free. The annual CGT exemption will be at its lowest level since 1996.
Current rates of CGT
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The rates of CGT for individuals for 2023/24
