Capital Gains Tax (CGT) Annual Allowance – Use it or Lose it
Post Author:
Rona Burns
Date Posted:
January 18, 2023
Share This:
Categories:
The CGT annual exempt amount reduces from £12,300 in the current tax year to just £6,000 for gains made in 2023/2024.
Remember that the 2022/2023 allowance is lost if not used by 5 April 2023. You may want to consider bringing forward disposals of chargeable assets where possible.
Where a married couple, who are higher rate taxpayers, own a buy to let property, bringing forward the disposal of the property from 2023/2024 to the current tax year, could potentially save CGT of up to £3,528 (£24,600 – £12,000 @ 28%).
It will be important to exchange contracts before 6 April 2023 as that is the critical date for CGT.
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
