Capital Gains Tax  

What is happening to the CGT annual exempt amount?

  • Describe some of the changes to the CGT annual exemption amount
  • Explain what impact this will have on investors
  • Identify what steps investors can take to make the most of the CGT exempt amount
CPD
Approx.30min

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Overall, cuts to the CGT annual allowance potentially mean that more clients will be pulled into the CGT net. They will also need to be aware of their reporting obligations as this may not have been on their radar before. 

Advisers will have a critical role to play in helping those clients who are trying to maximise this year’s allowance, and in helping keep future years’ liabilities to a minimum. 

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Dave Downie is technical manager at Abrdn

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. What will the annual exempt amount for CGT fall to in the upcoming new tax year?

  2. Why is the CGT annual exempt amount being changed?

  3. How should investors treat losses?

  4. If a client wants to dispose of a fund and then buy back in to make use of the CGT allowance, how long do they have to wait?

  5. For a higher rate taxpayer with a portfolio of £250,000, is it still worth making use of the allowance from April?

  6. If total taxable gains exceed the CGT annual allowance, they must be reported via self-assessment and tax paid by January 31 in the following tax year, true or false?

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You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe some of the changes to the CGT annual exemption amount
  • Explain what impact this will have on investors
  • Identify what steps investors can take to make the most of the CGT exempt amount

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