The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Taxpayers may wish to consider basic tax planning arrangements in use the capital gains tax annual exemption. This type of tax planning is often reviewed at the end of the tax year.
This guidance note first looks at the annual exemption in detail andthen various tax planning strategies that might be appropriate, depending on the family circumstances. It also considers actions to consider before the end of the tax year.
For other commentary that is relevant to year end tax planning, see the:
Timing of disposal for capital gains tax and'Bed andbreakfasting' with shares, which consider the date of disposal of assets andthe potential to delay the tax payment, andwhether it is possible to dispose andreacquire an asset without triggering anti-avoidance rules
Deferral of capital gains via reinvestment andTax efficient investments guidance notes, which consider investments that provide the taxpayer with relief from one or more taxes for the current tax year, or are exempt from income tax and/ or capital gains tax
Utilising allowances andlower rate bands guidance note, which considers how to use the personal allowances andlower rate income tax bands within the family
Each individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the annual exemption. The annual exemption is similar to the personal allowance for income tax in that the amount of gains covered by the annual exemption is not chargeable to capital gains tax.
The annual exemption is £12,300 for the 2020/21 and2021/22 tax years.
Any part of the annual exemption that is not set against gains in the tax year is lost. It cannot be carried forward or transferred to another person.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The majority of state benefits (also called social security benefits) are managed by the Department of Work and Pensions (DWP) via the Jobcentre Plus.Some benefits are dependent on a national insurance contribution record (and different classes of national insurance provide different benefit
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to
What is a quoted company?Reference to a quoted company is usually to a company where the shares in the company are listed on the London Stock Exchange, any other international stock exchange, or on AIM or ICAP Securities and Derivatives Exchange (formerly the PLUS market and now known as ISDX) in