The Taxman allows you exemption on the first £10,100 of gain between purchasing & selling shares.
If you bought shares last year that are currently showing a £8,000 profit you are still within the exemption. How about in 2 years time when the shares may be worth £18,000 with a £7,900 taxable gain, that could potentially attract a £2,212 CGT liability.
If you have not used your CGT allowance this fiscal year, you could consider selling the shares and re-purchasing shortly after* – this will utilise your CGT allowance and reduce the future taxable gain with negligible broker fees.
*You must not repurchase until 31 days have elapsed otherwise the Taxman will ignore the asset sale. You then may have the problem that when you cash them in 31 days later, the share price may have risen.
If you are married you can overcome this problem, as your spouse can purchase the identical shareholding on the same day and after 31days they can be transfered back to you. If you are not married you could re-purchase shares in the same sector, as these they may perform similarly.
If you would like to find out more on potential tax saving solutions then contact Antoni Czypionka >>