CGT annual exemption: Little by little?

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

CGT annual exemption: Little by little?

By Mark McLaughlin, February 2020

Mark McLaughlin looks at planning using the capital gains tax annual exemption.

The capital gains tax (CGT) annual exemption is a welcome and useful tax break for many taxpayers. 

It is generally available to individuals (i.e. £12,000 for 2019/20), personal representatives (for the tax year of death and the two following years) and trustees (albeit the maximum entitlement is generally one-half of the exemption for individuals; see TCGA 1992, Sch 1C). This article focuses on individuals. 

Don’t waste it!

The CGT annual exemption is a ‘use it or lose it’ allowance, in the sense that any unused exemption for one tax year cannot be carried forward (although it can be carried back to a limited extent on death).

Subscribe to a Tax Insider newsletter to get instant access to the Tax Article library.

Get instant access to 1798 articles and a 14 day free trial!
Subscribe
Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!