Britons urged to consider ‘different ways’ to reduce capital

“There’s also no CGT on cash so holding that in a high interest account can give growth that offsets the effect of inflation without creating a CGT bill.

“And even though it’s getting smaller, making sure you use the tax-free allowance remains important and allows you to take the gains held in other investments without paying CGT.

“It’s a ‘use it or lose it’ allowance that cannot be carried forward so making sure you don’t waste it and end up with gains in a future year that aren’t covered will still be good planning.”

Ms Lowe warned that there is one tax-free allowance for each taxpayer, so there may be times when it makes sense to share an asset with a spouse or partner before disposing of it so people can both use their allowances to offset the gain.

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By Temie Laleye

Temie Laleya is a Personal Finance TV Reporter, Daily Express

Arts and Entertainment, Business and Finance, United Kingdom
As seen in: Daily Express, MSN South Africa, MSN UK, Nottingham Post, Derby Telegraph

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