Investments Free from CGT

Capital gains tax is due on most investment gains of more than £11,100 - unless you invest in a chattel or wasting asset which bags you extra exemptions

Emma Wall 11 March, 2016 | 9:41AM

With less than one month left of this tax year time is running out for ISA and pension investors – or anyone looking to boost their savings and reduce their HMRC bill. Read our Guide to ISAs, Pensions and Tax-efficient investing to make sure you don’t get left behind.

Investments not held in a tax-efficient wrapper such as an ISA or a SIPP are liable to capital gains tax (CGT). Investors who have shares showing a gain may wish to sell them now in order to use this tax year’s CGT allowance of £11,100. Gains of more than this are liable for CGT which is 28% for higher rate taxpayers, and 18% for those who pay the basic rate of tax.

The CGT allowance is a use it or lose it amount like your ISA allowance, so if you are looking to take profits from an investment do so before April 5. Some personal assets are CGT free – your home for example, and any possessions worth less than £6,000.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Emma Wall  is former Senior International Editor for Morningstar

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