Capital Gains Tax Annual Exemption

With the ever-evolving landscape of taxation in the UK, staying informed about changes to Capital Gains Tax (CGT) is crucial for anyone looking to make the most of their assets. As we move into a new financial year, there are significant updates regarding the Capital Gains Tax Annual Exemption in particular that everyone should be aware of.

Capital Gains Tax Annual Exemption – What’s Changing?

The annual exemption acts as a tax-free allowance against your gains in a particular tax year and therefore reduces the amount of your taxable gains.

The new annual exempt amount for individuals for the 2024-25 tax year is £3,000. This is half of the previous year’s amount!

This new change has also affected trusts. Indeed, the trust annual exemption has fallen to £1,500 for the 24-25 tax year.

If you are planning on selling assets (like shares) in the future and were expecting to use the annual exemption, it may now be worth looking to sell before the end of this tax year.

Also, it is worth pointing out that the upcoming budget and potential election may change the allowances going forward. So, now more than ever it is probably best to refer to a qualified professional if you have any immediate concerns around the Capital Gains Tax Annual Exemption.

At Lewis Brownlee, we are dedicated to helping you navigate the intricacies of CGT. So, helping people optimise their tax position amidst the many updates is what we do best.

We understand that each individual’s circumstances are unique. So, our tailored advice is designed to meet your specific needs and objectives. Whether you’re considering asset disposal now or in the future, we can provide the insight and assistance to ensure you’re making informed decisions.

What the latest update show above all else is that there is always a strong possibility of alterations post-budget. Together, with the further upheaval a potential election could mean, this underscores the importance of agile tax planning.

So, if you would like to discuss your CGT strategy and how to best prepare for the effects of the new exemptions, please don’t hesitate to reach out. Our expert team is on hand to offer comprehensive support and to answer any questions you might have. Together, we can work towards securing your financial future in a changing tax environment.