Capital Gains Tax (CGT) Loss Planning

Are you facing a tax bill having incurred capital gains tax liabilities during the 2019/20 tax year, but recently also lost value on other assets as a consequence of the stock market collapse?

It could be worth (subject to suitable financial advice of course) realising some share losses by disposing of carefully selected poorly performing stock. These losses can then be offset against any gains already realised, mitigating your tax liability. Please note you will need to sell these shares by 5 April, as it is not possible to carry back capital losses to the preceding tax year.

You can also potentially still sell shares to realise a loss and then reacquire, side stepping the bed and breakfast anti-avoidance rules by reacquiring the shares either through an ISA, or perhaps have your spouse acquire then (assuming you have a trustworthy spouse who is willing to help!).

Our experienced Tax Team would be happy to discuss your Capital Gains Tax situation – Should you have any questions or queries you can get in touch on 01243 782 423 or by using our short contact form. You can also head to the  GOV.UK website to find out more information about Capital Gains Tax.Â