CGT annual exemption – use now while stocks last!

Each tax year, individuals receive a Capital Gains Tax (CGT) annual exemption, allowing them to make gains up to a set threshold without paying CGT. However, this exemption does not roll over—if you don’t use it, you lose it!

By making full use of your CGT annual exemption, you can significantly reduce your tax liability when selling assets such as shares, property, or other investments.

Should You Sell Now or Wait?

If you have already used your CGT annual exemption for this tax year, you may want to delay any further disposals until after 5 April. Doing so means:

  • You reset your exemption for the new tax year, benefiting from a fresh allowance.
  • If you owe Capital Gains Tax, payment will not be due until 31 January of the following tax year.

Strategic timing can help you reduce your overall tax liability while improving cash flow.

How to Make the Most of Your CGT Allowance

To maximise tax efficiency, consider:

  1. Spreading disposals across multiple tax years – Avoid exceeding your annual exemption by selling assets in stages.
  2. Using allowances within a couple – Married couples and civil partners can transfer assets to take advantage of both partners’ exemptions.
  3. Offsetting gains against losses – Any capital losses can reduce taxable gains, helping to minimise tax owed.

How We Can Help

At Lewis Brownlee, we offer expert Capital Gains Tax planning to ensure you make the most of your CGT annual exemption. Our services include:

  • Tax-efficient disposal strategies to reduce CGT.
  • Assessing whether to sell now or defer gains.
  • Maximising tax savings through exemptions and reliefs.

Don’t miss out—if you need help with CGT planning, contact us today via our contact page for professional advice.

Using your CGT annual exemption wisely could save you thousands in tax—act now before it’s too late!