For the last two years the first £12,300 of any Capital Gain by an individual hasn’t been chargeable to Capital Gains Tax.
6 April 2023 Capital Gains Tax reduction
From 6 April 2023 the annual exempt amount (AEA) will be reduced to £6,000.
Reporting limit
The proceeds reporting limit will also be fixed at £50,000, meaning that a sale with proceeds in excess of £50,000 will have to be reported even if there is not a chargeable gain.
6 April 2024 Capital Gains Tax reduction
From 6 April 2024 the AEA will be halved to just £3,000 and fixed at this level (as things stand).
How can I reduce my CGT liability?
Should you have any chargeable assets which have risen in value and which you’re contemplating selling it may be worth considering the timing of disposal to take advantage of as a high an exempt amount as possible. If you’re married you may wish to consider gifting half of an asset to you spouse prior to disposal.
If you wish to discuss this further, please contact Victoria.