CGT: Clients need 'different wrappers at different times'

A platform offers the opportunity to invest in multiple tax wrappers

clock • 4 min read

Barry Foster looks at the tax rules surrounding CGT and which wrapper provides the most protection...

The capital gains tax (CGT) annual exemption reduced from £6,000 to £3,000 from 6 April 2024. That's a significant drop from the £12,300 exemption in place just two years ago. And for trusts it has fallen to just  £1,500. To put this in some context, an investment of £60,000 growing at 5% capital growth would achieve a £3,000 capital gain if crystallised. So what is the value of the CGT annual exemption? Well of course it isn't £3,000 it is the amount of tax you would save by not paying tax on that £3,000 of gain. If you would be liable to CGT @ 20% the annual exemption is worth £60...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Farmers to take government to court over IHT reform

Farmers to take government to court over IHT reform

Claimants said govt 'failed' to consult with the sector on IHT Autumn Budget

Chris Brayford
clock 26 June 2025 • 3 min read
Advisers push back on IHT plans for pensions

Advisers push back on IHT plans for pensions

Most advisers recommending early pension access and gifting

Sahar Nazir
clock 25 June 2025 • 3 min read
Reform's Zia Yusuf hits back at Britannia Card criticism

Reform's Zia Yusuf hits back at Britannia Card criticism

Tax expert has argued it could cost £34bn

Jen Frost
clock 24 June 2025 • 2 min read