For 2019/20, individuals are entitled to an annual exemption of £12,000 and trustees to £6000. This represents an increase on 2018/19 when the exemptions were £11,700 and £5,650 respectively.
If you think that your investments have made substantial unrealised gains and you have not yet made use of your annual allowance, you should consider taking financial advice as you may be able to utilise your annual allowance, or similar. You could for example, consider reinvestment in an ISA (subject to the ISA limits), reinvestment by a spouse/civil partner or reinvestment into a similar holding. Please contact us on 01483 266666 for more information.
Consideration should be given to transferring assets between spouses/civil partners before encashment to enable each to use an annual allowance.
It is important to consider whether any investments have made a loss and whether excess gains could be offset by any losses. Losses can be carried forward indefinitely, so it is important to include gains, losses and the annual exemption in any calculation to determine how to maximise relief.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
The Financial Conduct Authority(FCA) does not regulate taxation advice.
This article is intended to provide a general appreciation of the topic and it is not advice.
For more information please contact Oakwood on 01483 266666 or email firstname.lastname@example.org and we will be happy to assist you.