Tax-free gains 2019-20

There are still a number of sales (disposals) that a UK taxpayer can make that will not incur a charge to the UK’s Capital Gains Tax. For most of us they are limited in extent, after all legislators have had plenty of time to close any favourable loop-holes.

For most of us, the major tax-free gain remains the sale of our home, but even this generous relief can be compromised. For example, readers who have let their home for a period should take professional advice to see if this will trigger a CGT liability when they sell.

Also, for the tax year 2019-20, individuals are entitled to make chargeable gains of up to £12,000 and pay no CGT.

If you jointly own a chargeable item, you would both be entitled to this £12,000 exemption and the £6,000 personal possession relief highlighted below.

Other tax-free gains include:

  • personal possessions as long as the proceeds do not exceed £6,000
  • your car, unless used in a business
  • anything with a limited lifespan, unless used in your business
  • ISA’s

Additionally, any gift to your spouse or civil partner, that would usually be subject to a CGT charge, is free of any CGT liability.

Even if none of the above exemptions apply in your circumstances there are a considerable number of additional reliefs you may be able to claim to reduce the impact of any CGT payable. If you are likely to be making disposals it is well worth the investment to see how you can quite legally reduce any impact of CGT.

A final note: take professional advice BEFORE you make the disposal. Seeking advice after disposal is rather like waiting for a bus after the last service has departed.

 

Latest Blog
23
May

Keeping an eye on the competition

If your competitor is a company, there is quite a lot of information you can obtain f...

Read More
21
May

The new State Pension

Prior to April 2016, men born before 6 April 1951 and women born before 6 April 1953,...

Read More
16
May

Tax-free gains 2019-20

There are still a number of sales (disposals) that a UK taxpayer can make that will n...

Read More
14
May

HMRC and the National Minimum Wage rates

Readers are reminded that from 1 April 2019, the National Living Wage (NLW) and Natio...

Read More

CONTACT SIMON COOPER